In what looks to be a tit-for-tat retaliation to the United States’ earlier ban on networking equipment from Huawei, China has announced a new vetting process for foreign hardware makers.

The report came directly from the horse’s mouth, from the Xinhua news agency. Widely considered to be a mouthpiece for China’s communist party, Xinhua quotes State Internet Information Office spokesperson Jiang Jun as saying that “a few” governments and enterprises have been taking advantage of their monopoly on technology to gather sensitive data for “a long time”.

“They not only seriously undermine interests of their clients but also threaten cyber security of other countries,” claimed Jiang.

So now China is racing in to the rescue – setting up a program to vet vendors who wish to sell equipment within its borders in order to safeguard its own cybersecurity.

Xinhua’s journalists aren’t exactly known for their dogged investigations – in many cases it’s believed they’re instructed what to write about. The fact this story also mentions Edward Snowden suggests China’s actions are a direct response to the whistleblower’s recent claims that the NSA is tinkering with US-made web routers before they’re exported. Then again, it could be a delayed reaction to the USA’s 2012 decision to ban Huawei from selling some of its own gear state-side. China angrily protested about this ban, but never did retaliate…

China’s move highlights how foreign policy can have a direct impact on the success of a nation’s domestic industries. Relations with China have soured somewhat with the cyberespionage row escalating to a new level following the US’s decision to indict five Chinese army officers. So long as these tensions remain, US companies could face increasing difficulty trying to do business with one of the world’s largest economies.

Could the US curry more favor in China with a review of its ban on Huawei products? Or have we already reached a point where the world’s superpowers simply don’t trust each other enough to use sensitive products built by their rivals?

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