[HIB]China policy could force foreign security firms out

[newsbot]

China is stepping up efforts to keep the security systems that protect its critical infrastructure in the hands of local firms, and that could be bad news for companies based outside the country. China has started sending out inspectors to check for compliance with a little-known initiative called the Multi-Level Protection Scheme (MLPS), the Associated Press reported Wednesday. Introduced three years ago by China's Ministry of Public Security, it mandates that core products used by government and infrastructure companies such as banks and transportation must be provided by Chinese companies. Over the past year, government inspectors have been telling some companies that they must switch to Chinese firewalls and other types of security technology, the AP said. The development could force security vendors such as Cisco Systems and Symantec out of important parts of the growing market, or force them to partner with local businesses, said Stephen Kho, senior counsel with Akin Gump Strauss Hauer & Feld, an international law firm based in Washington. "Right now, it seems to only affect the companies that are in the information security sector," he said.

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