China's new draft rule forces American tech giants to take Chinese partners. (Photo : Reuters)
China’s cybersecurity regulation is making it difficult for United States’ tech firms to pull through amid the expanding battle line where American companies are on one side and the rest of the world are on the other.
According to a Wall Street Journal report, American technology product developers are finding ways of keeping their companies afloat after one of world's biggest tech markets imposed more strict regulations on their products.
Americans have been known to dominate the tech industry since Google and Apple became two huge firms which left other nations no choice but to draw the line.
China's Tech Rule
According to a Bloomberg report posted on Insurance Journal, the draft regulations on cybersecurity might present obstacles to business groups around the world.
Apparently, the effects of the new rule are not limited to tech giants, though they are the most affected of all.
The report said that over two dozen businesses around the world signed a petition protesting the draft rules, saying that while China "has the right to implement measures necessary for the maintenance of cybersecurity," they "believe that the provisions go far beyond what is necessary."
The new draft of the cybersecurity law covers everything from data flow to cryptography, which the group deems as a source of discrimination against foreign technology suppliers.
In order to overcome this, American companies are forced to make their businesses "Chinese," according to the WSJ.
"Once we became Chinese, some hurdles were gone," Tony Yu told the WSJ.
Yu is the current chief executive of the Hewlett-Packard Co.'s Chinese reincarnation, the New H3C Group.
Because of this, the WSJ concluded that the best way for American companies to thrive amid the "increasingly stiff" tech rules from China is to seek Chinese partners.
Why China Drew the Line
While China's move may seem unfair for U.S. companies, other countries whose culture have been "Americanized" understand why the Asian country wanted to limit the influence of American tech giants.
An article from the New York Times cited that the French, Chinese, Indian and Brazilians are undergoing the same dilemma of protecting their cultural output against the unseen invasion of the Americans.
"There is Facebook co-opting your news media. Amazon is dominating book sales, while YouTube and Netflix are taking over television and movies," the article stated. "And the smartphone, arguably the most important platform for entertainment in this era, is controlled almost entirely by Apple and Google."
This left the Europeans no choice but to limit the reach of U.S. tech companies through "antitrust investigations" and "privacy regulations."
