Deal made with China on IT info disclosure (by Japan)

The Yomiuri Shimbun

Tokyo and Beijing have reached a broad deal regarding China's planned requirement that classified information technology data of products by Japanese firms be disclosed, limiting it only to products purchased by the Chinese government, it has been learned.

The system, which also will apply to other foreign firms, will start in May as scheduled and the Chinese government is expected to put the agreement in writing. The United States and European countries likely will make similar agreements with China.

The system announced by the Chinese government would force manufacturers to disclose classified information including source codes of IT products. Under the system, many high-tech products that Japanese firms have the lead in manufacturing could possibly be targeted.

If a firm were to refuse the disclosure, Beijing would ban all imports, manufacture or sale of the company's products in China.

Since Japan, the United States and European countries strongly protested the new system, saying intellectual assets could be leaked to Chinese companies, the Chinese government compromised, limiting the system to products purchased by the government, but excluding purchases by government-owned companies from the disclosure requirement.

http://www.yomiuri.co.jp/dy/business/T100320002788.htm