China's new tech rules play to local firms' strengths

FAVOURING LOCALS: The draft shows the regulation would initially focus on types of hardware and software where domestic suppliers already have a strong market position compared with their foreign rivals.

BEIJING/SAN FRANCISCO: Draft Chinese government regulation would force technology vendors to meet stringent security tests before they can sell to China's banks, an acceleration of efforts to curb the country's reliance on foreign technology that has drawn a sharp response from US business groups. 

But a translation of the proposed rules viewed by Reuters shows its immediate impact on foreign firms may not be as tough as feared.