China has adopted new rules to vet network equipment used by critical infrastructure providers, in the name of protecting national security. From June, all such products will be subject to a cybersecurity review, according to the notice issued by the Cyberspace Administration of China (CAC) and 11 other government agencies.
Among the network products and services covered by the regulations are core network devices, high-performance computers and servers, mass storage devices, large databases and related software, network security equipment and cloud computing services, Xinhua news agency reported.
The regulations, according to a CAC official, aim to safeguard the security of the supply chain of critical information infrastructure, by spotting and avoiding potential risks and damages. The move is not aimed at restricting or discriminating against foreign products or services, said the unnamed official, noting that China's policy of welcoming foreign products remains unchanged.
Under the new rules, before signing a contract, companies must submit procurement documents, purchase agreements and an analysis of the deal’s potential national-security impact for government review, the Wall Street Journal reports. The procedure normally will wind up within 45 working days but may take three months or more in complicated cases, said the CAC, which will lead the interagency scrutiny. The Ministry of Public Security is among the other agencies involved.
The CAC did not detail which companies would be affected. A concern for American businesses is wording that companies must assess risks of supply-chain disruption due to "politics, diplomacy and trade". This is seen as a direct response to the US government's move last year to add Huawei and several other Chinese tech firms to a trade blacklist.
