UPDATED 00:57 EDT / DECEMBER 05 2016

APPS

IBM, Intel, Microsoft object to Chinese demands for their source code

IBM Corp., Intel Corp. and Microsoft Corp. have all filed objections with the Chinese government after it requested they hand over the source code for some of their most important software products.

The objection comes after China passed a tough new cybersecurity law last month that requires foreign technology companies doing business in the country to submit their designs to local regulators, according to The Wall Street Journal. The idea is that China’s experts can then check through the code and make sure it doesn’t contain any security vulnerabilities.

China’s government says the measure is necessary so it can ensure its national security isn’t threatened. However, IBM, Intel and Microsoft are resisting China’s request. “Sharing source code in itself can’t prove the capability to be secure and controllable,” Microsoft told the Journal. “It only proves there is source code.”

According to Intel, the measure could actually lower the security of its products. In addition, it says the new requirements “would hurt technological innovation.” IBM also added an objection to China’s new requirement that cloud companies doing business there locate their data inside the country.

“Computing rooms used purely for commercial cloud computing purposes shouldn’t have to be located within China’s borders,” the company complained.

Although the companies have all come up with good arguments for not handing over their source code, it’s also likely there’s a bigger reason they’re objecting to the new rules. China doesn’t exactly have the most sterling reputation when it comes to tackling software piracy, and by handing over the source code for their products, it would make theft of their intellectual property a lot easier.

As a compromise, Microsoft had suggested that China’s experts could examine the source code of its software products in a closed environment under tight security. In other words, it would let the Chinese look at the code, while also preventing them from copying it. Unfortunately for Microsoft, China has dismissed that idea out of hand, the Journal reported.

It remains to be seen if IBM, Intel and Microsoft will cave in to China’s demands. After all, China is such a massive market that they surely wouldn’t want to walk away from it. With the new rules not coming into effect until June 2017, it’s likely the companies will spend the next few months trying to negotiate a more amicable deal.

Image credit: Glaborde7 via Pixabay

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