China extends security reviews to gadgets from Apple and others

China extends security reviews to gadgets from Apple and others

The reviews could be a fresh sticking point, raising questions about the security of American technology and the degree to which U.S. companies will acquiesce to Beijing's demands for fear of being punished in a huge market still partly controlled by the state. The interviews are being run by a committee tied to the bureau which controls the country's internet, and it includes experts from military and security agencies. These investigations, which target other companies as well as Apple, look into the capability of electronic devices sold in the country, and examine things like encryption and data storage. (NASDAQ:AAPL), Cisco Systems (NASDAQ:CSCO) and Microsoft Corporation (NASDAQ:MSFT). Other foreign technology companies who operate in China are also being required to submit to the reviews. There is no indication that foreign companies have provided access to highly guarded material such as source code - the digital underpinnings of software - or other commercial secrets. The U .S. government is in a hard position to object and raise its concerns about the reviews because of the lack of disclosure by China.

Cook made the remark during his latest trip to Beijing, as the company is trying to boost its contracting smartphone sales in China, its second-largest market after the United States. According to a report from the New York Times, government representatives have been questioning engineers and executives from different technology companies with regards to these issues for the last nine months.

The Cyberspace Administration of China said its security reviews is not targeting any particular country or product. China is also inspecting consumer gadgets.

During a recent congressional hearing, Apple legal chief Bruce Sewell said China had asked Apple to hand over source code within the last two years but the company refused to do so. The iPhone maker rejected its request. The country is an increasingly an important market for Apple, but received a blow in April when the Chinese government forced the shutdown of iBooks and iTunes Movies.

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