China is one of the biggest markets in the world with countless companies, both national and foreign, competing for the consumers’ attention. But the Chinese government is keeping an ever watchful eye on the companies doing business in the country, especially when foreign companies compete with local ones.
To that end, the Chinese authorities have begun a security review among many different American technology companies like Apple and others. These, while mostly done out of the public sphere, seem to target issues like encryption and data storage. According to a report from the New York Times, government representatives have been questioning engineers and executives from different technology companies with regards to these issues for the last nine months.
The so-called security reviews are being done by the Cyberspace Administration of China, with the government committee including experts tied to the country’s military and security agencies. While an official statement said that these reviews are part of normal operations and that no specific company or products are being targeted, the reality is that Chinese officials seem to be going after foreign technology companies, especially American ones.
This is the latest such step in a long list of moves that have brought tension between the US and Chinese governments, especially on matters of internet security and digital goods. Since Edward Snowden’s revelations about the NSA’s spying practices, the Chinese government has been trying to beef up security and exert tighter control over the services and devices that the Chinese public uses. To this end the country’s executive branch has pressured companies like Microsoft and Apple to disclose the way the companies store data, even going as far as asking for the tech giants’ source code.
On the other side of the Pacific, American companies are worried, not only because of China’s draconian measures but also because this could lead to other countries doing the same. Though few countries have China’s clout in the tech scene, other nations like Russia are also making similar demands in return for access to its local market.
An aggressively protectionist and isolationist move by a country such as China could have a ripple effect on the world economy, especially in the technology sector seeing how most of our gadgets and devices are made there.
Source: NYT