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China delays new bank IT policy

Nurdianah Md Nur | April 6, 2015
US government and technology companies have lobbied against the implementation of the new rule due to protectionist concerns.

China will be delaying the implementation of a new policy that requires banks to purchase safe and controllable technology products, following concerns from US groups that the rule will exclude foreign technology firms in the market.

However, it was unclear how long China will be delaying the new ruling, a US Treasury official told the Wall Street Journal.

Just last month, the China Banking Regulatory Commission (CBRC) and the Ministry of Industry and Information Technology drafted a new rule that forces banks' IT suppliers to conduct research and development in China and to file source codes with the CBRC. Following the announcement, US tech companies expressed concerns that the policy would require them to give up trade secrets in order to continue being suppliers to Chinese banks.

However, the CBRC has previously said that the new regulation is not meant to discriminate against foreign companies. It also claimed that it will be taking different opinions into consideration before implementing the rules.

According to the Wall Street Journal, the new policy was being discussed during a meeting between US Treasury Secretary Jacob Lew and China Vice Premier Wang Yang on Monday (30 March 2015).

It was also reported that the US filed a "communication" with the World Trade Organisation, questioning the Chinese bank rules. In the filing, the US said that it was concerned that the requirements would "severely limit access to China's commercial banking sector for many foreign ICT products, services and technologies." 

 

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