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China Wants U.S. Tech Companies To Pledge Compliance With Their Security Standards

by Czarelli Tuason / Sep 19, 2015 03:53 AM EDT
U.S. President Barack Obama visits China | By: Feng Li | Getty Images

China, in their letter to certain U.S. tech firms, called for a pledge of compliance from the western nation over their security standards by surrendering to the Government of China user data and intellectual property.

Tech Times reported on Friday that the letter asked U.S. tech companies to "promise to accept supervision from all parts of society, to cooperate with third-party institutions for assessment and verification that products are secure and controllable, and that user information is protected, etc., to prove actual compliance with these commitments."

By "secure and controllable" products, industry groups believe some U.S. companies would be required to enable system access to third party companies and give out source codes and encryption keys.

No details were confirmed as to the timeframe given to the tech companies to address China's letter and what the implications may be, if any, should these companies refuse to comply.

Fortune also noted on Thursday it is still not confirmed as to which U.S. tech companies received the pledge of compliance from China. A tech forum in Seattle, however, is set to take place next week as organized by Beijing officials, which is expected to be attended by big companies, including Google, Facebook, Uber and Apple.

With China having approximately 650 million Internet users, companies worldwide are actively participating in the competition to lure the Chinese market as the biggest business opportunity in the world.

"Everyone has assumed that it is easier in the market if you are seen as a friend of China," said Adam Segal, senior fellow of the Council on Foreign Relations. "People have doubled down on that strategy now that the pressure has increased so dramatically."

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