Monday was a small win for technology companies in the United States. A senior U.S. Treasury official explained China has agreed to delay implementation of some bank technology rules, igniting heavy lobbying by the U.S. government and tech companies due to protectionist concerns. However, it is unclear how long China will delay the rules and if it will agree to suspend them as the U.S. is requesting, according to the Wall Street Journal article. It is also unclear how many of the rules will be deferred.
The rules set forth by the government this month require banks to buy “safe and controllable” technology products. If tech companies do not want to be shut out as suppliers to Chinese banks, the guidelines force them to submit to invasive inspections and give up trade secrets, U.S. trade groups say. Groups have petitioned the hardest against one rule that requires companies to hand over source code.
U.S. officials pressured China on the issue by filing a “communication” to the World Trade Organization on Wednesday, questioning the new guidelines. The U.S. claimed it was concerned that the new rules would “severely limit access to China’s commercial banking sector for many foreign services and technologies,” the article said.
China is investing billions of dollars into important technology sectors such as semiconductors and software to reduce its dependence on U.S. companies.