China recently reportedly agreed to delay a rollout of regulations that would have restricted state-operated banks from purchasing or employing foreign equipment and technology. According to Reuters, the US Treasury Secretary Jack Lew met with Chinese officials including Premier Li Keqiang in Beijing presumably to discuss concerns over security measures designed to protect state-backed banking institutions from any outside threats.

Although government officials didn’t comment on the matter, the publication claimed industry groups found the news promising. More specifically, the report mentions BSA The Software Alliance which represents Apple, IBM, Microsoft, Oracle and others, as well as the Software and Information Industry Association, which represents a number of firms including Google. Law saw China’s strict banking protections could present problems for US companies in the region, even if those rules continue to remain pending. Lew said the following regarding the matter:

We made clear that suspending them is the right approach.
The country’s decision plays a role affecting Apple, which is currently looking to expand its Apple Pay mobile payments service into international markets. China continues to represent one of Apple’s largest area of potential growth, as it is expected to play a major role in the rollout.

We’ll have to wait and see how Apple strategically plans their expansion into the country.

Source: Reuters