China Demands Software Secrets

[Mulboyne]

Yomiuri: China to make foreign firms reveal secret info
The Chinese government plans to introduce a new system requiring foreign firms to disclose secret information about digital household appliances and other products starting from May, sources said Thursday. The envisaged system is likely to target products such as IC cards, digital copiers and possibly flat-panel TVs. If a company refuses to disclose such information, the Chinese government plans to ban the firm from exporting the product to the Chinese market, as well as bar production and sales in the country, according to the sources. Critics worry that such a system risks seeing the intellectual property of foreign firms passed onto their Chinese competitors. In addition, the envisaged system poses security concerns if coding technology used in digital devices developed in other countries is leaked to China, they added. Observers say the issue could develop into a serious international trade dispute, with Japan's Economy, Trade and Industry Ministry and U.S. Trade Representatives expected to urge the Chinese government to drop the plan...more...

[Behan]

China Inc.?

[Neo-Rio]

The Chinese can take a flying leap.

When they don't get what they want, they'll just probably accuse everyone else of not playing nice.

[Catoneinutica]

The Chinese can take a flying leap.

When they don't get what they want, they'll just probably accuse everyone else of not playing nice.

Heh. China, Inc, is following word-for-word the development-model playbook of Japan, Inc.

When Japan, Inc, doesn't get what it wants, it just accuses everyone of "Japan bashing."

But it almost always gets everything it wants.

[Neo-Rio]

Heh. China, Inc, is following word-for-word the development-model playbook of Japan, Inc.

When Japan, Inc, doesn't get what it wants, it just accuses everyone of "Japan bashing."

But it almost always gets everything it wants.

Reminds me of Lil' kim's playbook:-

[bolt_krank]

Yeah - I don't see anyone agreeing with this.
See how much China manages to copy without such a plan...

[Neo-Rio]

If any company did comply, then the Chinese may end up finding that the products they are buying come with incredibly high prices.

The Chinese may have just as well told everyone to go feck off.

[Socratesabroad]

As I cross-posted here:

Software and movie piracy is rife in China]have[/i] to use pirated software or their studies/job performance would suffer. Put simply, Chinese will use pirated software until something else comes along. Plus, it seems the new Linux flavor touted by the gov't was just a bluff, so the Chinese'll go back piracy.

[Mulboyne]

Yomiuri: China to put squeeze on foreign firms

The Chinese government has decided to launch a system next month to force foreign manufacturers of digital household appliances and other items equipped with computing devices to disclose key information, The Yomiuri Shimbun learned Thursday. The move is aimed at controlling the makers' products when their goods are made or sold in China. Beijing likely has informed Tokyo and Washington that detailed provisions to enforce the system will be announced by the end of this month. The Chinese government likely will give manufacturers a grace period before implementing the system, but the new rules will be enforced after this period ends. After the plan to introduce the system was reported, Japan, European countries and the United States urged the Chinese government to abandon the idea because it would make it easier for foreign companies' intellectual property to be passed on to Chinese competitors. Critics say Beijing's decision to launch the system despite opposition from other countries likely will cause an international problem.

The system will require foreign companies to disclose the source code for their products in a bid to rein in their information technology products made or sold in China. Under the planned system, a Chinese government official would visit companies in Japan to check products. If a company refuses to have its products inspected, those products will not be allowed to be manufactured or sold in China. No developed nation has this kind of system.

The system could cover a wide variety of products, including contactless integrated circuit cards, digital copying machines, ATMs and other products made by Japanese companies. As reasons for launching the system, Beijing cited prevention of computer viruses, among other reasons. However, source codes can be used to crack ciphered information as used in IC cards, ATMs and other high-tech products. But this potentially could lead to companies being financially compromised and leakages of state secrets. The governments of Japan, European countries and the United States strongly oppose the introduction of the system. In autumn last year, the Japanese business community expressed concerns to the Chinese government over the system.

When China first disclosed the idea of the system, it said it planned to announce provisions to enforce the inspection in May last year and start the system next month. In response to strong criticism, the Chinese government changed parts of the system but decided to implement it next month as planned. A grace period likely will be set to allow companies to prepare necessary documentation for the Chinese government, but it is not yet known how long this period will last. China announced in March that it would postpone the implementation of the system, but Beijing seems to perceive the period of grace to be equivalent to postponing the implementation. After obtaining details of the system, the governments of Japan and other countries likely will point out problems with the scheme and demand that Beijing revise or abandon it.