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</A> -Cui Bono?-

http://www.wired.com/news/politics/0,1283,34376,00.html

                       U.S. to China: Change Crypto Regs
                       Reuters

                       8:20 a.m. 16.Feb.2000 PST
                       ARLINGTON, Virginia -- Trade
                       Representative Charlene
                       Barshefsky pressed China
                       Wednesday to abandon its
                       restrictions on encryption
                       technology, which curb sales
                       of everything from software to
                       mobile phones.

                       Under regulations that took
                       effect last month, all foreign
                       and Chinese companies or
                       individuals using encryption
                       technology, which protects
                       electronic communication from
                       eavesdropping, must register
                       with the government.


                       "It's going to have to change,"
                       Barshefsky told business
                       executives in a forum on
                       U.S.-China trade relations in
                       Arlington.

                       The United States is a leading
                       manufacturer of computer
                       software and the regulations,
                       imposed only months after a
                       landmark U.S.-China trade
                       deal on admitting Beijing to
                       the World Trade Organization,
                       may curb U.S. exports to
                       China.

                       She said her U.S. negotiators
                       have repeatedly pressed China
                       authorities to reform these
                       rules and also dismissed
                       Chinese efforts to restrict
                       information over the Internet
                       as futile.

                       Chinese officials have tried to
                       reassure foreign investors
                       about the new encryption
                       technology rules, saying they
                       should not affect the pace of
                       foreign investment into China.

                       The United States eased its
                       restrictions on exports of
                       products containing encryption
                       earlier this month, despite the
                       fears of security agencies that
                       it could help criminals.

                       Copyright � 1999-2000 Reuters
                       Limited.

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