BEIJING (AP) - U.S. Treasury Secretary Jacob Lew said Monday he pressed Chinese leaders over proposed curbs on the use of foreign security products by banks and other restrictions on access to China's technology market.
BEIJING (AP) — U.S. Treasury Secretary Jacob Lew said Monday he pressed Chinese leaders over proposed curbs on the use of foreign security products by banks and other restrictions on access to China's technology market.
The United States and Europe say Beijing is improperly blocking access to its growing technology market with the curbs in proposed anti-terrorism and banking security measures.
"We have already made clear our deep concern about issues regarding forced technology transfer and other attempts to bar technological competition most recently in the banking sector, and I look forward to continuing that discussion," Lew said in a meeting with a deputy Chinese premier, Wang Yang.
Lew was due to meet later with China's No. 2 leader, Premier Li Keqiang.
The two sides also planned to discuss preparations for Chinese President Xi Jinping's planned U.S. visit late this year.
Communist leaders are uneasy about China's heavy reliance on foreign encryption and security technology and are a trying to build up domestic suppliers. Since the late 1990s, they have tried repeatedly to compel foreign suppliers to disclose how their products work but have backed down in most cases following an outcry by other countries.
Proposed rules on bank security would require Chinese institutions to have 75 percent of their information infrastructure certified as "secure and controllable" by the government by 2019. Companies worry they might have to disclose secrets such as the source code at the heart of their products or shift ownership of their intellectual property to Chinese entities.
An anti-terror law under consideration by China's legislature would require network operators to build in backdoors for government surveillance, hand over encryption keys to Chinese authorities and store user data within China.
Beijing has tried to mollify foreign concerns, though it has given no indication the law might be changed. A spokeswoman for China's legislature, Fu Ying, said this month the anti-terror measure would not affect the "legitimate rights" of companies.
The rules have prompted an unusually high-level reaction abroad. American officials including Secretary of State John Kerry and Trade Representative Michael Froman have written to Beijing to express concern, according to U.S. officials.