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US signs new law to restrict purchase of Chinese IT products

The law prohibits NASA and the Justice and Commerce Departments from purchasing IT products

By CBR Staff Writer

The government of US has signed a new law which will prevent buying IT products developed by Chinese firms due to the concerns over cyber attacks.

The move follows claims that the Chinese government is behind a widespread and systemic hacking campaign targeting US businesses.

The law prohibits NASA and the Justice and Commerce Departments from purchasing IT products that is produced, manufactured or assembled by any entity that is owned, operated or subsidised by China.

The agencies will be able to purchase the information technology systems once they receive approval from the officials of the government saying that there is no risk of ‘cyberespionage or sabotage associated with the acquisition of the system’.

About $129bn worth of advanced technology products from China are being imported by the US, according to a report published by the Congressional Research Service in May 2012.

According to Reuters, Chinese foreign ministry spokesman Hong Lei has urged the US to abandon the law to help develop relations between the two countries.

"This bill uses Internet security as an excuse to take discriminatory steps against Chinese companies," Lei said.

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"It is not beneficial to mutual trust between China and the United States nor to the development of trade and economic relations."

House Intelligence Committee has released a report in late 2012, urging US companies and government agencies to dissuade from doing any business with Chinese telecommunications firms such as Huawei Technologies and ZTE because of the security risks they pose.

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