China cyber security plan aims to protect state secrets vs. cyberspying; foreign tech business may weaken in said country

China's Ministry of Industry and Information Technology (MIIT) will create a cyber security plan in order to safeguard state secrets. The plan though is expected to affect foreign technologies when it comes to doing business with the world's second largest economy.

CYBER SECURITY VS. CYBER SURVEILLANCE

The five-year cybersecurity plan drafted by China's software bureau seeks to secure data of government agencies, government-owned businesses and financial institutions. MIIT Director Chen Wei was quoted in a report saying that they are expecting to see changes in its software for the next five years. A draft of China's national security law was posted online this month and it aimed for autonomy and control of cyberspace against harmful and unethical practices.

Beijing lately stepped up its protection on its information technology following former National Security Agency contractor Edward Snowden's exposé that American spy agencies set codes in technology products that are for exports to snoop on their foreign targets.

These intelligence agencies are said to be determined in getting all kinds of data from the web as well as international communication lines, a source adds. Information Techology firms have long been forced to cooperate with spies.

CONSEQUENCES

The cyber security plan however is expected to affect foreign technology companies' business transactions in China, with the possibility that the latter may opt for domestic products. A report said that in February, China has already declined some world-leading technology brands from a government-approved procurement list following the issue on cyber spying. It has instead approved thousands of local products.

Moreover, China's bank regulator has in the meantime suspended bank technology guidelines in April changing foreign technologies with local ones. This is in response to a clamor from banks, other businesses and the government. Soldiers in China were also prohibited from wearing wearable technology such as smartwatches in order to avoid possible transmission of sensitive information.

China is determined to beef up security by improving their own technology as well, even if it would mean cutting business ties with foreign countries.