http://www.computerworld.com/s/article/9244515/NSA_spy_scandal_prompts_China_push_to_favor_local_tech_vendors
By Michael Kan
IDG News Service
December 4, 2013
While China's demand for electronics continues to soar, the tech services
market may be shrinking for U.S. enterprise vendors. Security concerns
over U.S. secret surveillance are giving the Chinese government and local
companies more reason to trust domestic vendors, according to industry
experts.
The country has always tried to support its homegrown tech industry, but
lately it is increasingly favoring local brands over foreign competition.
Starting this year, the nation's government tenders have required IT
suppliers to source more products from local Chinese firms, said an
executive at a U.S.-based storage supplier that sells to China. In some
cases, the tenders have required 50 percent or more of the equipment to
come from domestic brands, said the executive, who requested anonymity.
Recent leaks by former U.S. National Security Agency contractor, Edward
Snowden, about the U.S.'s secret spying program aren't helping the matter.
"I think in general China wants to favor local brands; they feel their
technology is getting better," the executive said. "Snowden has just
caused this to accelerate incrementally."
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