China requiring foreign firms to reveal source code

New Chinese rules will require foreign firms to hand over their source code for most computing and networking equipment. Companies would also have to set up research and development centers in the country, get permits for workers servicing technology equipment and build "ports" which enable Chinese officials to manage and monitor data processed by their hardware. The regulations initially apply to firms selling products to Chinese banks but are part of a wider initiative.

It comes at a time of heightened tension between the USA and China over cybersecurity. Beijing has considered its reliance on foreign technology a national security weakness, particularly following former National Security Agency contractor Edward Snowden's revelations that US spy agencies planted code in American-made software to snoop on overseas targets. It was also alleged that the US National Security Agency spied on Chinese firm Huawei, while the US Senate claimed that the Chinese government broke into the computers of airlines and military contractors.

US business groups called the rules "intrusive", saying they would force technology sellers to create backdoors for the Chinese government, adopt Chinese encryption algorithms and disclose sensitive intellectual property. They have asked the Chinese government to delay implementation of the regulations.