In a move that shows the growing power of foreign companies and the telecommunications market in China, the government this month backed down from laws that would have limited the use of everything from laptops to cell phones. A clarification issued on regulations covering the use of encryption said they did not apply to most commercial applications such as cell phones, computer operating systems, and Internet browsers. The episode highlights the government's challenge in trying to control the fast-evolving technologies necessary for so much of today's businesses.
Telecommunications is the hottest sector of China's economy.
Cellular phone subscriptions have topped 40 million, and in the past six months the number of Internet users doubled to 9 million and is expected to double again this year. Dissidents and the banned spiritual group Falun Gong have used the Internet to organize protests despite harsh crackdowns, and the initial ban on imported encryption software was apparently sparked by security concerns. Analysts say the government is worried by the growing chorus of critical voices on the unregulated and anonymous Internet. In late January, the government issued a ban on leaking state secrets over the Internet. The government also banned the online publication of any news not first printed by official media.