U.S. business group urges China to loosen data-storage policies

China is considering IT policies that could further restrict foreign businesses, according to a U.S. lobbying group

Chinese security policies are threatening to push foreign businesses out of the country's IT sector by restricting the way data is stored, according to a U.S. lobbying group.

On Tuesday, the American Chamber of Commerce in China issued a report urging the country to change the policies. Increasingly, the Chinese government is enacting regulations to address national security concerns at the cost of hampering its own economy, the lobbying group warned.

China has been recently reviewing an antiterror law that could require tech companies to give up encryption keys to the authorities.

Although the U.S. has complained, China has said that it's essentially mimicking Western governments in their efforts to use the Internet and telecommunications to track terrorist activities. Following leaks that the U.S. had been secretly spying on the country, China has also been stepping up its efforts on cybersecurity.

The upcoming policies could end up encouraging Chinese businesses to buy domestic IT services over foreign ones. Existing Chinese regulations, however, are already creating roadblocks for foreign tech firms wanting to enter the market, according to the chamber.

Chinese policies have essentially demanded the creation of local data centers to meet the regulations. These laws include prohibiting banks from storing personal financial information outside the country, or allowing data to be removed from China if it contains state secrets.

In Tuesday's report, however, the chamber said China's policies were excessive and create a "redundancy" in data centers, which are costly to make and which small and medium-size companies can't afford.

Chinese regulations should instead open the market to encourage competition among security providers, the chamber said. "The Chinese government should take a more rational approach to its security issues," added James Zimmerman, chairman of the chamber, in the report.

Both the U.S. and China are negotiating a bilateral investment treaty. The chamber is urging that language be included to keep the data flow between the two countries unrestricted.

Convincing China to change its policies could entail the U.S. loosening its own restrictions against China.

On Monday, Chinese Premier Li Keqiang urged the U.S. to lift a ban on exporting high tech to the country, according to China's state media.

This comes just after the U.S. government blocked Intel from selling its chips to supercomputing centers in China. The U.S. government agencies claim the Intel chips had been involved in uses related to nuclear weapons testing.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags regulationsecuritygovernmentintel

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?