Obama makes an ultimatum to China

[DARPA]

Barack Obama demanded that the Chinese government to cancel the introduction of the bill, similar to the Russian law on personal data. China does not intend to give in, which can cause withdrawal of US companies with market's second largest economy in the world. Problems import in China will not have: instead they have a Google Baidu, instead of Twitter - Weibo, also have a decent Xiaomi smartphones with their version of Android.

On Tuesday, Obama personally demanded that the chairman of the CPC Central Committee Xi Jinping to change the plans of the government of the PRC. "We have made it clear that this is what they have to change if they want to continue to do business with the United States," - Obama said in an interview with Reuters. http://www.reuters.com/article/2015/03/ ... H520150303

The situation is very ambiguous. On the one hand, to the White House Conference on cyber security and consumer protection at Stanford University February 13, 2015 members of the US government and President Obama himself reported on the record figure of US economic growth thanks to the IT company, announced its "digital" and linked it to the development of future US high-tech companies. In addition, the United States announced its sphere of economic interests of the entire Internet, regardless of geographic boundaries, and promised to resolutely stop all attempts to artificially limit the development of its Internet industry by means of discriminatory legislation and regulation.

On the other hand, Obama has made it clear that the fight against cybercrime and terrorism IT giants will have to accept supervision and availability of personal data for security services, though it will try to make it less noticeable to the user by means of biometric identification technologies.

Of course, such a policy is not satisfied neither the European Union nor China.

China recently and so painfully react to demonstrative rounds "Golden Shield" (system servers, content filter on the border of the Chinese segment of the global network), and the growing popularity of products Apple (especially iPhone 6) in the country. US company and Tim Cook have accused Chinese security services in an attempt to break iCloud. Greatly influenced and disclosure of information on the global surveillance of American and British intelligence agencies Edward Snowden.

Now China has decided to play the same card as the United States. China plans to amend the legislation to ensure the effective confrontation of the terrorist threat from Islamic separatists calling for a separation of the largest administrative region of Xinjiang in the northwest of the country, also known as East Turkestan.

The Government of China submitted a public bill, similar in effect to the Russian law on personal data, which will take effect from September this year.

All Internet companies that operate in the Chinese segment and the Chinese audience will have to store personal data of Chinese users in data centers, which are physically located in China, and provide a record of users upon request of law enforcement agencies.

But that's not all. Foreign and Chinese companies selling equipment in China using data encryption, will be required to provide special services to the Chinese special keys to gain access to data and communication channels in case of need.

The equipment that will be used in the banking sector should also be appropriately tested and certified.

A little earlier, the Chinese government is excluded from the list of goods permitted for procurement, equipment and software such major US companies as Cisco Systems Inc., Apple Inc., Intel, McAfee and Citrix Systems. Although the nomenclature of goods IT companies purchased for public use increased from 2 thousand. 5 th. For the last two years, orders will get mostly Chinese manufacturers.

For the US, it's all very frustrating, as has already affected the sale of US companies, and further conflict, which may lead to withdrawal from the market of the PRC even larger number of western producers, is inevitable.

US companies whose business is based on trust of users around the world will have a strong resistance to the requirements to provide personal data of users and keys to kriptozaschite, which means that sales may sag for a long time, that really does not fit in with the plans of the US government.

It should be noted that the Chinese market, unlike the EU, has its own equivalent of the American giants: it is the largest telecommunications company Tencent, and search engine Baidu, and analogue Twitter - Weibo, QQ and messengers and WeChat, and, of course, the giant online -Shop Alibaba payment system Alipay. Let's not forget about the Xiaomi Tech with his version of Android, completely independent from Google.

And if the Russian company, despite all the talk of import substitution, will not be able to replace their American products, the Chinese companies quickly take care of Americans formed with niches.

Threatening deterioration of trade relations with China, Obama provokes conflict, which, of course, it is unpleasant for some Chinese companies. For example, Alibaba, which just came out last fall in the US market and led the largest in the history of e-commerce offering of securities in the open market.

However, we must understand that China, unlike Russia - the second largest economy in the world, and the conflict with China would be for the United States is very sensitive. You can, of course, refer to the agreement under the WTO, yet China has its own laws on its territory, and in the case of continuation of harsh statements by the United States of the conflict can not be avoided. The escalation of the conflict that inevitably ensue, may affect the entire global economy.