The deadly impact of China cyber security Law on American companies

Chinese Address: China to develop stricter cyber security law, is absolutely bad news for Apple

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Introducing strict new rules for technology companies, want to sell their products to Chinese banks,the new Y Ork times reports-stoking fears of a crackdown that could harm American businesses.

Now, companies hoping to sell equipment to Chinese financial bodies would has to give the Chinese government unprecedented Access to their products, according to documents seen by the newspaper. This includes handing-over source code, establishing-centres in the country and building "' ports ' to allow Chines E officials to manage and monitor data processed by their hardware. "

The new rules is significant in themselves:international companies produce as much as 90% of "high-end servers and Mainf Rames "used in the country. Many of these companies is American, and would be loathe-hand over the highly confidential material required.

and other proposed anti-terror legislation goes further still, demanding technology companies provide encryption keys for Encrypted services and to store data on Chinese users within the country.

The suggestions would perturb numerous American technology companies looking to doing business in the increasingly significant Region-chief among them, Apple.

Analysts has predicted that Apple are now selling more iPhones in China than the US. It ' s an incredibly important market. And we also know that's alreadypressuring Apple to cooperate with them over security fears. Tim Cook had agreed to "security audits" of the IT products sold in the country-but he also says Apple have "never worked WI Th any government agency from any country to create a backdoor in any of our products or services ... And we never would. "

As such, Apple might bend on other requirements, but it's unlikely to budge on creating backdoors or surrendering Encrypti on keys. Apple is already under fire in the US over IT decision to enable encryption by default (one senior cop have called the IPH One of the ' phone of choice for paedophiles '), but the company is holding fast. It ' s also beingpressured by the British government on the same subject.

The New York Times reports that foreign businesses is objecting to China's proposals, claiming they "amounted to protecti Onism "-and It's probably true, forcing companies like Apple-jump through ever-more hoops-keep operating in the COM Pany.

Applemay has just hadthe most profitable quarter in corporate history, but it's not all good news

The deadly impact of China cyber security Law on American companies