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China stands firm on encryption rules
Monday, 15 March 2004 10:24 EST

China will not back down on a plan to force computer makers to adopt a new standard for encrypting wireless communications after Intel Corp. said it would halt sales of its Centrino chip package in the nation. Intel, the world's biggest chipmaker, will stop sales of the wireless communication device after balking at government demands for alterations before June 1. A quarter of all laptops sold in China last year used the chip, including those made by Legend Group Ltd., the country's largest personal computer maker.

"The government's position is unequivocal,'' said Wang Xilin, deputy director of the Standardization Administration of China, a unit of the State Council, the Cabinet. "June 1 is the deadline. That's not going to change.''

Intel spent US$300 million promoting its Centrino chip package last year as the company tried to tap demand for laptops.



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