China tightens grip over the Internet

U.S. Commerce Secretary Penny Pritzker makes a speech at Microsoft China Center in Beijing 

A full text of China’s new Internet law has yet to be released, but it calls for better cybersecurity, according to a report from China's state-controlled Xinhua News Agency. The country's key information systems and data will also be made "secure and controllable" under the law.

Previous drafts of the legislation don't state in detail what that control might mean. US trade groups have expressed ongoing concern that China's security policies are going too far, and could push foreign businesses out of the country.
Earlier this year, China's anti-terror legislation drew complaints because it could require US tech companies to hand over encryption keys to the country's government. President Obama even weighed in and asked China to change the legislation.

In recent years, however, China has made cybersecurity a priority, following leaks from security contractor Edward Snowden that claim the US had been secretly spying on Chinese companies. The Chinese government has even said it would block IT products from being sold in the country, if they failed an upcoming "vetting system."

The policy changes in China probably won't bode well for US tech companies, especially for those that supply IT products to the government or state-owned companies, according to analysts. Already, China heavily censors its Internet and blocks many U.S. sites, including Facebook, Twitter and Google. China, however, has said its new security laws are following what other Western countries have done to improve their cybersecurity.
"China has always maintained open policies to the rest of the world," said Zheng Shuna, a government official during a press conference. "We welcome all foreign enterprises in China to abide by the laws, and offer legitimate services."
Computerworld: http://http://bit.ly/1HHGr6o