International IT Companies Face Continuing Headwinds In China

Our September 16, 2014 client alert, "Brave New World? Recent Challenges Facing Foreign IT Companies in China", discussed efforts by the Chinese government to enforce heightened network security standards, with a particular focus on the issuance on September 1, 2014 by the Ministry of Industry and Information Technology ("MIIT") of the Guiding Opinions on Strengthening Network Security in the Telecommunications and Internet Sectors (关于加强电信和互联网行业网络安全工作的指导意见; the "MIIT Opinions").

A great deal has happened in the six months since the MIIT Opinions were issued. Developments include:

• the announcement of network security standards in the banking sector that have raised substantial concerns for both financial institutions and IT providers, including a growing concern among foreign IT companies ("FITCs") that the Chinese government's campaign to enhance network security is a thinly disguised "buy local" campaign; and