NSA spy scandal prompts China push to favor local tech vendors

[InfoSec News <alerts () infosecnews org>]

http://www.computerworld.com/s/article/9244515/NSA_spy_scandal_prompts_China_push_to_favor_local_tech_vendors

By Michael Kan
IDG News Service
December 4, 2013

While China's demand for electronics continues to soar, the tech services 
market may be shrinking for U.S. enterprise vendors. Security concerns 
over U.S. secret surveillance are giving the Chinese government and local 
companies more reason to trust domestic vendors, according to industry 
experts.

The country has always tried to support its homegrown tech industry, but 
lately it is increasingly favoring local brands over foreign competition.

Starting this year, the nation's government tenders have required IT 
suppliers to source more products from local Chinese firms, said an 
executive at a U.S.-based storage supplier that sells to China. In some 
cases, the tenders have required 50 percent or more of the equipment to 
come from domestic brands, said the executive, who requested anonymity.

Recent leaks by former U.S. National Security Agency contractor, Edward 
Snowden, about the U.S.'s secret spying program aren't helping the matter. 
"I think in general China wants to favor local brands; they feel their 
technology is getting better," the executive said. "Snowden has just 
caused this to accelerate incrementally."

[...]



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