China Suspends New Financial Banking Cybersecurity Rules
The bank regulator of China suspended the new financial web security rules temporarily this week after comments and feedback from banks that showed practical challenges regarding the country’s long-term effort of cutting dependence on matters of entrenched foreign technology.
Based in Reuter’s review of the notice issued, the country’s regulators said that the decision of the rules, which would have been effectively replacing foreign technology products with local alternatives, followed after the banks and financial sectors and other related parties gave their opinions for proposed changes and improvements.
Although the White House have been vocal critics and business and technology companies in the US lobbies for the new rules, the analysts said that the key opposition might also be coming from within the banks in China themselves that also run their critical operations using standard products offered by the IBM.N (IBM) servers and ORCL.O (Oracle Corporation) databases.
Gene Cao, an analyst from Forrester said that the banks themselves had limited acceptance of local IT products and they wanted to avoid failures. For them, if there would be a failure because of the local products, they would handle the responsibility and not the China Banking Regulatory Commission.
Let’s check out more updates on this story and see where China’s moving when the new rules are permanently implemented on their banking and financial sectors.