China has temporarily halted a change in banking technology policy that would have forced U.S. corporations to abide by a new set of rules and force companies to send over source code, intellectual property and several other industry secrets to the government.

It's part of a growing trade conflict between the United States and China with both trying to keep all private and public sector working inside the country and not outsourcing jobs, programs and products to the other.

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Several U.S. corporations including IBM, Apple and Microsoft -- all of whom have ties with Chinese banking infrastructure on a hardware, software or service level -- have pushed to end this new policy through a trade group representing several technology companies.

Backpedalling is rare from the Chinese government, but given the severity of information needed in the new policy it will look into amending the policy. The trade group also advocates for European and Japanese technology companies, making it more of a global issue.

The growing trade conflict in the technology sector follows months of the U.S. and China both accusing one another of spying, surveillance, tampering with technology and other covert operations. Both countries have denied the accusations.

The Edward Snowden allegations only put more fuel on the fire, showing the U.S. has indeed set up an international surveillance network with allies in Australia, New Zealand, Canada and the UK.

Australia and New Zealand have used the surveillance network to snoop on China's closest allies and trade partners in Southeast Asia although there are no signs of either nation attacking Chinese infrastructure due to the potential backlash from the government.

The growing discontent could lead to even more trade embargos as China and the U.S. look to find other suppliers. Both are still each other's biggest importer, making it hard to remove all connections.

On the consumer side, it seems like China isn't that bothered when it comes to U.S. corporations, using Microsoft's Windows and Office and even playing video games like League of Legends and DoTA 2, both based in the U.S.

In the U.S., we may see a surge in Chinese related products and services as Alibaba and Xiaomi prepare a global launch sometime in the next few years. Drone company DJI is currently the consumer leader in the U.S. with hundreds of thousands of customers.

Tagsbanking, surveillance, trade embargo