China is imposing tough restrictions on firms supplying computer equipment as a way of combating cyber crime. However, the law incorporates aspects of state censorship requiring vendors to prevent unapproved information from being on their systems. In addition, there are circumstances envisaged where equipment vendors will be required to disclose their source code. Both of these actions could be interpreted as artificial trade barriers for non-Chinese vendors.
I think it likely that tech vendors will find this new Chinese law difficult to swallow, and it will lead to quite a bit of friction, especially with US IT vendors.
China’s New Cybersecurity Law Rattles Foreign Tech Firms Lawmakers described the law as necessary to bolster its online security at a time of multiplying threats BEIJING—China’s government has approved a broad new cybersecurity law aimed at tightening and centralizing state control over information flows and technology equipment, raising concerns among foreign companies operating in the country.