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  • By The Financial District

Draft Law Wants Companies To Design, Produce Devices Only In China

The Chinese government is planning to require overseas manufacturers of multipurpose office equipment to design and manufacture such products in China, The Yomiuri Shimbun reported.


Photo Insert: The regulation also applies to the procurement of businesses that operate key infrastructure such as telecommunications, transportation, and finance.



Printers, scanners, and other items that do not fulfill the requirements will most likely be barred from submitting tenders to central and municipal governments, as well as public corporations.


The Japanese government and corporations have warned that the new legislation could result in a "de facto forced transfer of technology," with important innovations being leaked to the Chinese side.



The proposal might become a new code to be followed when tendering for government contracts and other initiatives. The State Administration for Market Regulation in China is compiling it under the title “Information security technology — Security specification for office devices.”


According to a draft of the regulation obtained by The Yomiuri Shimbun, office devices purchased by the government and others through the tendering process “should be designed, developed and manufactured in China.” and devices “will be inspected to evaluate whether the design and production processes were conducted in China.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

The regulation also applies to the procurement of businesses that operate key infrastructure such as telecommunications, transportation, and finance.


It specifically names "critical components" in-office devices as major control chips, laser-scanning parts, capacitors, electrical resistors, and motors, emphasizing that such products must be designed and manufactured in China.


These multifunctional devices can include high concentrations of sensitive technologies, some of which might be repurposed for military use.



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