China Demands Tech Companies to give them Backdoor and Encryption Keys

Beware of malware on smartphones
February 2, 2015
SaveMe Malware Infiltrates Google Play
February 4, 2015

3 February 2015

http://cdn.iphoneincanada.ca/wp-content/uploads/2012/09/iPhone-5-China-315x315.jpg

A number of western companies are doing big business in China, but now they may have to pay a huge value for to do so. China has introduced strict new banking cyber security regulations on western companies selling technology to Chinese banks. The Chinese government wants backdoors installed in all technologies that imports into the Middle Kingdom for the benefit of Chinese security services.


The latest rules also state that western companies must hand over the Encryption Keys and secret source code as well. The requirements are so absurd that it would be impossible for companies like Apple to comply, which could harm American businesses.

The Chinese government has adopted new regulations requiring companies that sell computer equipment to Chinese banks to turn over secret source code, submit to invasive audits and build so-called back doors into hardware and software, according to a copy of the rules obtained by foreign technology companies that do billions of dollars’ worth of business in China,” The New York Times reports.

The new requirements, detailed in a 22-page long document approved late last year, are in response to Edward Snowden’s revelations about the United States National Security Agency’s surveillance activities on Chinese networks.

In May 2014, Chinese government announced that it will roll out a new set of regulations for IT hardware and software being sold to key industries in their country. China have repeatedly blamed U.S. products and criticize that U.S. products are itself threat to national security, as they may also contain NSA backdoors, among other things.

The US Chamber of Commerce and other groups called these new rules by Chinese official “intrusive”. They has also called Chinese government for talks on the issue.

An overly broad, opaque, discriminatory approach to cybersecurity policy that restricts global internet and ICT products and services would ultimately isolate Chinese ICT firms from the global marketplace and weaken cybersecurity, thereby harming China’s economic growth and development and restricting customer choice,” the paper read.

U.S. businesses fear that the latest regulations by China will effectively shove them out of the world’s largest and fastest-growing market. Recently, it was announced that Apple became the biggest smartphone seller in China in the final quarter of last year. The scale of effect could be calculated from this.


Last week, it was revealed that Tim Cook had agreed to “security audits” of its products sold in the country, but Apple has always insisted that it will never allow backdoor access to its products nor compromise the encryption used by its products and services, “and we never will.


However, many firms may not find this demand to meet, due to intellectual property and security concerns. So just wait and watch how other companies respond to this fresh regulations of China demands backdoor access.