Beijing: China has initiated steps to retaliate against the US action, to stop big Chinese companies, including Huawei. China has formulated new cyber law with a provision that the foreign companies, in the information technology sector, will have to assure national security. The US and European companies have accused the Chinese government,even in the past, of creating obstacles, in the business of the foreign companies. Now, with these new laws and their provisions, the indications are that the western companies may choose the option to exit from China.
Two weeks ago, US President Donald Trump declared a national emergency, against the foreign telecom companies. While declaring this emergency, President Trump had underlined the threat to the national economy. Although Trump order did not mention any Chinese companies, it is being said that this order was to target the Chinese companies. Following the declaration of emergency, the US trade department released a Black List, which includes 70 companies including Huawei.
China had expressed strong displeasure against the US action. Claims were made that China was exploring different options to retaliate against the trade war initiated by the United States as well as the action commenced against Huawei; which included stopping the supply of Rare Earth Minerals, selling of US bonds and taking action against the US companies to rock the stock markets in the United States.
The Chinese Cyberspace administration seems to have added to it by proposing an amendment to the existing cyber laws. As per sources, certain changes have been suggested in the Chinese cyber laws, and they are to target foreign companies. The proposal states that these steps are being taken to strengthen the security and control of the Chinese cyber sector. This entails providing information of threats to national security, associated with the use of foreign products and services.
The cybersecurity experts have claimed that China can use this provision to target the US technology companies, under the pretext of national security. China passed a cybersecurity-related law in 2017. Foreign companies and countries had strongly objected to this law. Fears had been expressed that the law may be used to gain control over the foreign companies operating in China. The fears seem to be turning into a reality with the new legislation and the provisions contained therein.
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