Under the law, a committee will be created to evaluate and approve technical products made by foreign companies before their use in China. The companies will have to hand over a lot of valuable information, such as exact technical details and encrypted data. Originally, source codes were also supposed to be required but this was removed from the law after much criticism from abroad. Nonetheless, sensitive information will still be required and critics say that subjecting all foreign hardware and software to this process, but exempting Chinese products, gives Chinese companies an unfair advantage.
Fifty-four groups – including the US-China Business Council, BusinessEurope, the American Chamber of Commerce in China and its Japanese and German counterparts – have signed a letter asking for the law to be postponed. There has not yet been a response from Beijing.