• According to media reports, 52 executives have left their positions in leading state-owned financial institutions.

According to media reports, 52 executives have left their positions in leading state-owned financial institutions. (Photo : Reuters)

After suspending a set of banking cybersecurity regulations earlier this year, China is planning on resuming their applicability, which could potentially draw criticisms from the U.S. The development comes just weeks before Xi Jinping makes his first state visit on American soil as China's president.

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The previous regulations contained provisions that required Chinese banks to buy more domestic IT equipment, while Western technology vendors were compelled to disclose secret source code if they sell to lenders.

It drew condemning remarks from the U.S. and European governments.

Officials from the China Banking Regulatory Commission (CBRC) informed several Western tech companies, such as Microsoft, IBM and Cisco Systems, that they would seek opinion over the next month on a new version of the bank procurement rules.

According to China, the regulations were suspended in April in order to consider more properly the feedback coming from domestic banks.

For the U.S. and Obama administration, it was seen as a victory in diplomacy since the suspension was announced shortly after Treasury Secretary Jack Lew and Commerce Secretary Penny Pritzker made visits to Beijing.

The resumption of the regulations has dampened the optimism of foreign technology companies, and it underscores China's determination to uphold what it considers a top national security priority.

The announcement is expected to further complicate relations between Washington and Beijing.

Although he already went to California for a 2013 visit to talk with technology companies, President Xi will conduct his first state visit to the White House in September.

Expected to be on the list of the agenda are the theft of U.S. government personnel data by suspected Chinese hackers and cybersecurity disputes.