The U.S.
Trade Representative's
skimpy "Fact Sheet"
for the Phase One
deal does not
address the new
December 1
and January 1
Chinese rules on
cybersecurity.
When asked
by Maria Bartiromo
on TV, Larry Kudlow
knew nothing.
Below, I summarize
Any information, data,
communications,
trade secrets, or
technology "protected"
under the "trade deal",
will be available to the
Chinese authorities
from new December 1, 2019
and January 1, 2020 rules !
On December 1, 2019,
Beijing implemented the
Multi-Level Protection
Scheme 2.0,
issued pursuant
to the 2016
Cybersecurity Law.
On January 1,2020,
China's Cryptography Law
becomes effective.
These measures prohibit
foreign companies from
encrypting data so that it
cannot be read by the
central government
and the Communist
Party of China !
Businesses will be required
to turn over encryption keys.
Companies will not be able
to employ virtual
private networks
to keep data secret,
and some believe they
will no longer be allowed
to use private servers.
These measures
allow Beijing to take
all the data and
communications of
foreign companies.
Chinese officials
will be permitted,
under Chinese law,
to share all the
seized information
with state enterprises.
China's officials having
encryption keys, and
access to the China
computer network
of a foreign firm,
will be in a better position
to penetrate the networks
of that firm located
outside China.
Beijing will be in a better
position to steal data
stored on foreign networks !
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