China has suspended its policy that restricted foreign technology from being used in the country's banking sector. A notice issued by Chinese regulators on Monday called for the suspension of the rules until further review, according to Reuters.
Experts agree that biggest push behind the policy reform came from the Chinese banks, despite heavy lobbying from U.S. businesses and the White House.
Gene Cao, an analyst at Forrester, told Reuters that Chinese banks already have “a limited acceptance of domestic IT products.” Since the end of last year, companies that sold computer equipment to Chinese banks were required to meet a list of demands, including turning over source code.
The policy was set in place after Snowden leaks revealed that U.S. agencies implanted spyware in American technologies exported overseas. Since the announcement of the proposed rules, U.S. groups, including the Chamber of Commerce, have objected to the measures.