Bloomberg Business reports that China has expanded their national security law to cover cyber threats as the threat of nation state attacks increase (emphasis added):
Chinese President Xi Jinping, who is overseeing the law as head of a new national security commission, has said the government must safeguard security in politics, culture, the military, the economy, technology and the environment.’’ The law also adds to concerns that China will prevent state-owned enterprises and the military using technology produced by foreign companies.
China is seeking to develop domestic alternatives to replace most foreign technology used by banks, the military, state-owned enterprises and key government agencies by 2020, according to people familiar with the effort.
The bill will advance efforts to build a national cyber-safety net that will complement the domestic-internet controls of the so-called Great Firewall, and aims to safeguard “industries and key areas important to the national economy.”
Although this should come as no surprise to anyone, this move will have an impact on the US cyber security industry. Even though the aim is to prevent state-owned enterprises and the military from using foreign technology, likely the Chinese private industry will follow in those same footsteps. So while China is a huge market, they just closed one very large door the US was hoping to be able to walk through.