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Deputy Trade Representative Robert Holleyman
said the United States would keep lobbying China to put a hold
on the rules, which would force technology vendors to Chinese
banks to hand over secret source code and adopt Chinese
encryption algorithms, until there was a "satisfactory
resolution."
"We are working to try to break down those barriers, and we have
also secured support from our allies and trade partners in Japan
and the EU," Holleyman, who raised the issue with Chinese
officials during a visit to Beijing last week, told the National
Lieutenant Governors Association.
"This is not just a U.S.-led initiative; it's an important
global initiative."
Asked about Holleyman's remarks, Chinese Foreign Ministry
spokesman Hong Lei told reporters: "China's Internet development
must also respect China's own laws and rules."
Brussels has also raised the issue with Beijing at the
ministerial level and plans to flag its concerns at the World
Trade Organization's next meeting on technical trade barriers.
"The EU is concerned by the lack of transparency in the
development of these measures and by the potential impact on EU
companies," a European Commission spokesperson said.
Chinese banks had until Sunday to submit plans for how to comply
with the new regulations, which Holleyman said would largely
shut U.S. technology and ATM providers out of the Chinese
market. Washington is also pressing for China to pause the
implementation of a draft counterterrorism law which could hit
IT companies as well.
Victoria Espinel, who succeeded Holleyman as president of
lobbying group BSA The Software Alliance, said the U.S. industry
was working "very closely" with colleagues overseas.
"What we have been doing very successfully (is) to make clear
towards the United States government, the European government,
the Japanese government (and) the government of China that this
is a concern," she said.
"It is not good for Chinese companies to be cut off from being
able to choose the best products and services they want, it's
not good for China ... as an economy."
U.S. State Department Under Secretary for Economic Growth
Catherine Novelli said the combined approach should pay
dividends.
"Hearing these things from so many different channels is the
proof that ... this actually is the generally widely held view
of those who know about technology," she said earlier this
month.
(Additional reporting by Phil Blenkinsop in Brussels and Ben
Blanchard in Beijing; Editing by Simon Cameron-Moore)
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