August 28, 2016
China is allowing foreign technology companies to join a key government committee in an effort to ease foreign concerns over its strict cybersecurity policies, according to The Wall Street Journal.
The inclusion of Western tech companies on the cybersecurity committee paves the way for better relations between the two largest internet markets.
China is hoping that the committee will improve its international standing as a technological hub, giving it more sway in future cyber policy making. The agency, called the Technical Committee 260 (TC260), is tasked with defining what technologies are “secure and controllable.” This includes deciding whether China will adopt standards that challenge from international standards.
Fostering better relations between China and the Western companies could facilitate substantial growth. The country is the largest smartphone market in the world, which benefits manufacturers, software and app developers, and data center storage companies alike. Easing of tensions would be especially beneficial for international app developers looking to break into the massive market.
But it could also provide an avenue for Chinese businesses to begin operating in the US.Businesses like Huawei and Xiaomi have been essentially stonewalled by the US due to patent law infringements, relegating their sales to online stores. Opening up relations between the two markets could facilitate the entrance of these vendors to the market.