An official notice issued by the China Banking Regulatory Commission and the Ministry of Industry and Information Technology jointly said that the rules, which came into force in December 2014, have triggered protests from the US Government as well as various business groups.
The rules made it mandatory for companies selling computer equipment to banks in China to return intellectual property in addition to submitting source code.
Decision on suspension of the bank-technology rules helps to ease tensions pertaining to cybersecurity between Washington and Beijing and improve the security of technology used by Chinese banks, media sources reported.
The move is also a blow for major American companies manufacturing latest computing hardware that crunches numbers for Chinese banks.
The regulatory notice said that opinions for improvements and proposed changes put forth by various financial institutions in the banking industry and related parties prompted China to take such decision.
In an effort to crash the Chinese barriers, Washington is holding talks with allies in Europe and Japan and asked for a clarification on the technology rules.
According to Beijing, the Chinese technology rules are aimed at bolstering online security in the government and critical industries.
Foreign trade groups representing multinational companies such as Microsoft, IBM and Apple complained about the protectionist policies, which compel foreign companies to exit China.
Representing one of China’s vital steps toward restricting foreign technology, the rules are said to continue till further notice.
Image: Suspension of the bank-technology rules helps to ease tensions pertaining to cybersecurity between Washington and Beijing. Photo: courtesy of Keattikorn/FreeDigitalPhotos.net
