China Softens Security Regulations

Western companies are struggling with China’s strict cyber security regulations, and US tech firms are increasingly looking to reach China via JVs. Microsoft Corp., Qualcomm Inc. and Cisco Systems Inc., all of whom faced difficulties in China, have formed Chinese JVs over the past year to keep up with strict security requirements. Despite China’s reputation as a tough market to break into, these rules and regulations may change. During a tech meeting last week, Chinese Premier Li Keqiang reiterated that security rules must apply equally to all companies registered in China to nourish a “more fair, transparent and predictable investment environment.”