CHINESE INFO TECH ANNOUNCEMENT, JAPANESE REACTIONS

UNCLAS TOKYO 001019 SENSITIVE SIPDIS STATE FOR EAP/CM, EEB/CIP, EAP/J STATE PASS USTR FOR TWINELAND, EHOLLOWAY E.O. 12958: N/A TAGS: EIND EINT ETRD ETTC JA KIPR TINT CH SUBJECT: CHINESE INFO TECH ANNOUNCEMENT, JAPANESE REACTIONS ¶1. (U) Summary: Japanese media have reported extensively over the past week on China's proposed IT security disclosure requirements. While there is some relief China walked back from immediate implementation, Japanese industry remains concerned. Praising the effect of U.S.-Japan coordination to date, an industry representative strongly urged governments to keep pressing China not to implement this unworkable scheme. End summary. ¶2. (U) Recognizing the serious impact on industry of proposed China Compulsory Certification (CCC) source code disclosure requirements for IT products, Japanese media have featured numerous articles on the subject over the past week. Responding to Beijing's April 29 announcement that China will delay implementation for a year and narrow the scope to government procurement, papers continue to reflect Japanese industry's serious concern over the terms and scope of the requirement. The primary concern noted in the articles, however, is with the intellectual property implications and that this may be a part of a plan to steal advanced foreign technologies. ¶3. (SBU) A representative of the Japan Electronics and Information Technology Industries Association told emboff the association plans to issue a press release with its reaction, but has not yet done so. He said the public reaction will be cautious, but privately noted even the reduced scope of the requirement is completely unacceptable and industry concerns exceed what we see in the media. The association official spoke very appreciatively, though, about the thorough coordination between U.S., Japanese, and European governments, as well as the extensive engagement with industry. Familiar with the positions government representatives have taken, he urged that we continue to press the Chinese government on the matter. ¶4. (SBU) Dr. Ikuo Misumi, Director of IT Security Policy, Ministry of Economy Trade and Industry, commented that the actual language of the Chinese announcement is vague about the scope of both the procurements and technologies covered, and leaves considerable uncertainty about future implementation. He reaffirmed industry's continuing concern and, noting he is in regular direct contact with Washington, said he expects to continue close coordination with the U.S. ZUMWALT