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China could reportedly use its 'unwritten' tech rules as an 'invisible tool' against US firms

2018-08-15 10:02:06       source:CNBC

August 15, 2018


With Sino-American trade tensions escalating, China's cybersecurity standards could be used as an "invisible tool" of retaliation against Washington's tariffs, according to one expert.


Those so-called standards are government-issued guidelines about things like firewalls and software that are technically voluntary, but are oftentimes treated as mandatory by foreign firms' Chinese business partners. Over the past several years, Beijing has issued close to 300 new national standards, Washington-based think tank the Center for Strategic and International Studies said in a report earlier this month.


Those additions are contributing to China becoming an increasingly difficult market for some firms, the report said, explaining that the new standards could potentially hit foreign-owned firms with unforeseen costs and delays for operating in China — or they could even lead to companies shutting down their Chinese businesses.


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https://www.cnbc.com/2018/08/15/us-china-trade-war-chinese-cybersecurity-standards-could-be-employed.html