Saturday, December 21, 2019

China Trade Deal is a Flop -- Trump Administration in the dark

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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