China and Russia aren't ready to go it alone on tech, but their threats are worryingly plausible
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Both nations now operate approved vendor lists that government agencies and even business must consider when shopping for technology. Russia's forcing web companies to store personal data on its soil. China demands to see vendors' source code and has made the price of admission to its market a joint venture with a local firm, along with a technology transfer deal. Last month China also passed a security law requiring vendors to assist local authorities with investigations while further restricting internet freedoms.
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“If China were a smaller market there is no way the government would get away with the controls of the internet, supporting domestic industry and requiring technology transfer,” he says. “You could not get away with it and still be part of the global supply chain.”
“China is maxing its leverage and at the same time more companies have made this compact that they will give a pound of flesh to stay in China. Their hope is giving the pound of flesh will not lead them to bleed out. They hope to stay a step ahead and regenerate.”
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Local vendors have, however, been emboldened. Russian vendor New Cloud Technologies sells its own productivity suite and has stated an ambition to replace Microsoft Office and Exchange from Russia's public sector. Others are ramping up development.
Local cloud providers also appreciate the policy requiring web companies to store personal data on Russian soil. That law has the effect of making it a little harder to consider the big global public clouds. But Godoretskiy told The Register Russian users are more comfortable shopping locally, no matter the legal situation. Products like Azure Pack, Microsoft's Azure-for-service-providers offering, are therefore attractive behind the old iron curtain.
http://www.theregister.co.uk/2016/12/07/russia_china_tech_policy/
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