CHINA TOPIX

11/02/2024 11:28:03 am

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China Increases Internet Control and Scrutiny of Foreign Tech Companies

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(Photo : Reuters) With China being the most populous country in the world, you would wonder how big the number of their netizens is, wherein a lion’s share of Chinese people using the internet is mostly from mobile phone users.

China has issued a proposal in which the government seeks to acquire part ownership of the largest Internet and tech companies in the country, while requiring foreign tech firms - especially from the U.S. - to undergo security reviews.

These reviews, according to a report by the New York Times, are directed towards foreign-made technology products and devices - focusing specifically on encryption and data storage - to determine whether they constitute a threat to national security.

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According to Analyst Ben Cavendar of China Market Research, the move by the Chinese government is apparently motivated by "fears of social instability" and security. Mr. Cavendar said that China is expanding its inspection of companies more than it ever did before, seeking to understand how foreign-made products and services work.

For many, the current state of the situation is also part of a widespread crackdown on illicit activities on the web. Doug Young, a Professor at the Fudan University in Shanghai, said that China's current efforts are an attempt to reestablish the government's "historical control over information".

The Hong Kong Free Press recently reported that this attempt "should not be interpreted as an attack on the Internet", instead the government is only trying to apply the country's law to the Internet and its users. "A clean and healthy cyberspace is in the interests of the people, while a foul and unhealthy one serves no one," said President Xi Jinping.

Premier Li Keqiang said Tuesday at a recent technology summit that the country aims to focus on the protection of "intellectual property" and "commercial secrets", while providing a fair platform to both foreign and local companies.

As part of China's mission, the government had begun blocking virtual private networks (VPN services) since 2014, including very popular social networking sites, giving citizens no choice but to use domestic services. Despite the ban, however, it is said that local Chinese companies and businesses have taken advantage and benefited from the policy as it encourages more domestic competition. Since 1998, the country has been trying to control its cyberspace from external influences through the launch of "The Great Fire Wall".

In China, it was recently revealed that the country has around 780 million mobile Internet users since 2015, which is about 56.8 percent of the entire population. The number has increased rapidly since 2014 and the number is still expected to grow.

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