Computer Code Rule Decoded

The Chinese Government clarified its electronic encryption regulations Thursday to ease undue anxiety among foreign investors. The regulations cover only specialized hardware and software that use encryption as a "core function,"said Zhang Xiang, Foreign Trade and Economic Co-operation vice-minister.

Encryption ensures the secure transmission of data, authenticates the content of it and controls access to information being transmitted.

"Wireless telephones, Windows software and browser software are not subject to the regulations," Zhang said yesterday.

He made these remarks at a meeting with business representatives from the United States, France, Japan and South Korea.

Zhang also listened to the comments of business representatives.

China issued its "Commercial-Use Encryption Management Regulations" in October, 1999 and announced them on November 8.

These rules sparked fears among foreign high-technology companies about selling encoded products in China.

Zhang said China will not give any institutions the confidential data of foreign encryption products or equipment containing encryption technology.

"Foreign businesses needn't be worried about it," he said.

The vice-minister said the encryption regulations are among those that the Chinese Government is set to review, and overhaul if necessary, in light of World Trade Organization commitments.

Expecting to gain its long sought WTO membership this year, China has started to change rules and regulations to be more compatible with international norms.

"The Chinese Government is determined to continue its opening-up policy and will be responsible for its commitments," he said.

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