BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/17
Recent information suggests the planned regulations will not be applied to Chinese banks as such. Large US tech firms considered the proposed regulations less of a data security issue than a trade policy strategy meant to bolster the competitive advantage of Chinese firms. Establishing and maintaining local server clusters would be very expensive for foreign firms. Chinese banks have themselves expressed concern that rules limiting them to domestic data security firms would weaken their existing data security technology significantly.