China passes anti-terrorism bill that worried tech

Lawmakers in China passed an anti-terrorism law on Dec 27 that drew concern from tech companies and President Barack Obama as it was being considered. The law requires technology companies to provide Chinese authorities with technical assistance and help with decryption. Critics had said that the draft version of the law used a recklessly broad definition of terrorism, gave the government new censorship powers and authorized state access to sensitive commercial data. The government argued that the measures were needed to prevent terrorist attacks. Opponents countered that the new powers could be abused to monitor peaceful citizens and steal technological secrets. In the end, the approved law published by state media dropped demands in the draft version that would have required Internet companies and other technology suppliers to hand over encryption codes and other sensitive data for official vetting before they went into use.

American tech companies objected that the law would force them to divulge secrets central to their businesses if they wanted to operate in China. President Obama himself has raised concerns about the growing number of regulations in China aimed at tech companies. He said of the draft anti-terrorism bill in March that his administration has “made it very clear to [the Chinese government] that this is something they are going to have to change if they are to do business with the United States."