Home / Component / China to give local tech firms an advantage in banking

China to give local tech firms an advantage in banking

China looks set to turtle up its tech industry in the near future, with the government soon to debate a new draft legislation that would see foreign tech companies need to meet security minimums before being able to sell to Chinese banks. The plan is thought to be to make China less dependant on foreign software and hardware providers for its banking back end systems and other assorted technology.

Chinese Banking Regulatory Commission released this potential guideline in December, urging the government to push for a more Chinese-centric model of software and hardware adoption. US Businesses have reacted by asking for a delay in rolling out any such changes, fearing it could lead to a drop off of sales for them in the region. However, their pleas may fall on deaf ears as in the wake of the Edward Snowdon revelations, China has been keen to extricate itself from the clutches of US software providers, perhaps fearing backdoor holes for NSA and other Western spy agencies to utilise.

hongkong

However this won't apply just to banking systems, but in-fact to plenty of technological products and services. As Reuters points out, the translated documents point to everything from air conditions to wireless routers and automated teller machines. On top of that though, any software powering these systems will also need to be either Chinese, or pass stringent security tests in order to be allowed for use in the country.

While these new regulations – if they pass – would make it harder for US and other foreign tech firms to sell their products in China, it wouldn't become impossible. They would need to prove that they have a measure of independence from the US government if they were to be accepted. Other changes that the legislation would bring, include the fact that any firm looking to sell computer components in China, will also be required to set up R&D facilities within the country, as well as allowing Chinese officials to monitor any data processed by their hardware.

Even if this move doesn't come to pass now, the writing is on the wall in China. It wants to control its own technological future without reliance on the West.

Discuss on our Facebook page, HERE.

KitGuru Says: I wonder if we're heading towards a bit of a technological cold war? If China stops accepting US software and hardware, will the US step in to bar Chinese products in turn?

Image source: Ida Shum

Become a Patron!

Check Also

Among Us 3D announced with free PC demo for Steam Next Fest

Among Us became widely popular in its original 2D form but the development team at InnerSloth is looking to change things up soon with the release of Among Us 3D. As the name suggests, this is the same social deduction game we all know and love, but in a 3D environment instead. 

We've noticed that you are using an ad blocker.

Thank you for visiting KitGuru. Our news and reviews teams work hard to bring you the latest stories and finest, in-depth analysis.

We want to be as informative as possible – and to help our readers make the best buying decisions. The mechanism we use to run our business and pay some of the best journalists in the world, is advertising.

If you want to support KitGuru, then please add www.kitguru.net to your ad blocking whitelist or disable your adblocking software. It really makes a difference and allows us to continue creating the kind of content you really want to read.

It is important you know that we don’t run pop ups, pop unders, audio ads, code tracking ads or anything else that would interfere with the KitGuru experience. Adblockers can actually block some of our free content, such as galleries!