IBM gives Chinese gov’t access to software code

IBM said it is giving the Chinese government access to some software code, seeking to demonstrate the security of its products as the company tries to expand its business in the country.
Beijing won’t receive client data or “back doors” into the technology, International Business Machines Corp. said Friday in a statement. Technology providers including Microsoft Corp. have reached similar agreements in China, IBM said. Microsoft established a program with China in 2003, giving the government access to some Windows source code.
“Strict procedures are in place within these technology demonstration centers to ensure that no software source code is released, copied or altered in any way,” IBM said. “Those are applied rigorously regardless of country.”
Concerned about cybersecurity, China this year enacted security measures requiring foreign technology companies to show software code to the government. The purpose of the law is to prevent other parties from illegally accessing China’s systems and data through computer programs like viruses, said Ray Wang, principal analyst at Constellation Research.
“As everybody knows, there’s a tacit understanding that if you want to do business in China, you need to show them how this stuff works,” he said. For IBM, “the significance here is the first-mover advantage.” Jing Cao, Bloomberg