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Chinese government relying more on home grown hardware, technology

Chinese government reducing reliance on foreign-made technology and hardware
By: Michael Hatamoto | Business, Financial & Legal News | Posted: Feb 25, 2015 6:51 pm

China has turned its back on Cisco, Apple, McAfee, and other major US technology companies, dropping the companies from its approved purchase lists. Instead, Beijing has approved thousands of Chinese-made hardware and software vendors, in an effort to boost the Chinese technology industry.




One-third of foreign tech brands were cut from China's approved list, as domestic brands increased to almost 5,000.


"The Snowden incident, it's become a real concern, especially for top leaders," said Tu Xinquan, associate director for the China Institute of WTO Studies at the University of International Business and Economics, in a statement to Reuters. "In some sense the American government has some responsibility for that; (China's) concerns have some legitimacy."


Last month, Beijing demanded companies selling products to Chinese banks to turn over documents related to security - and use encryption algorithms approved by the government. However, the American Chamber of Commerce and other business groups wrote a letter warning the Chinese government that the new rules would demand "intrusive" security policies.


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