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China’s new bank IT policy worries EU and US groups

Nurdianah Md Nur | March 20, 2015
The new regulation requires commercial banks to ensure that their IT equipments are secure and controllable.

China's new policy requiring commercial banks in the country to buy "secure and controllable" IT equipment is straining the country's relationship with its major trading partners, reported the Financial Times.

Drafted by the China Banking Regulatory Commission (CBRC) and the Ministry of Industry and Information Technology, the new rule forces banks' IT suppliers to conduct research and development in China and to also file source codes with the CBRC. Banks are expected to begin deploying the new equipment by 1 April 2015 and are given four years to ensure that 75 percent of their IT products secure and controllable. IT products include equipments such as cash machines, point-of-sales terminals and cash counters.

Foreign tech suppliers and government officials in the EU and US have expressed concerns that the new policy is aimed at boosting local IT suppliers. They were, however, hopeful that negotiations over investment treaties could dilute the impact of the new regulation, which is in its early stages.

 

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