Nation won't yield on IT security

US objections seen as unjustified complaints from lame-duck Obama administration

Although United States Treasury Secretary Jack Lew's recent visit to Beijing yielded signs that China may delay in demanding that companies such as IBM Corp and Oracle Corp turn over key data, the country still intends to ensure national security with tighter controls on the information technology sector. So it is too soon for US-based technology companies to exhale with relief.

China, a top market for international IT providers, will be choosy about awarding contracts when it comes to government procurement, where tens of billions of dollars are being spent annually to keep hardware and software up to speed with the growing economy.