U.S. President Donald Trump and Chinese President Xi Jinping, REUTERS.

Testing time for President Trump and Chinese digital protection

Apple announced this week that it was opening a new data storage center in Guizhou, a province in southwest China. The move was in response to strict new rules (both sweeping and vague) in China’s newly enacted cybersecurity law. Under the law, companies must store Chinese citizens’ data in China and agree to other onerous and potentially anti-competitive restrictions (see below). The point made here is that Apple’s knuckling under is just another step in a slow but steady drive by Beijing to implement its Made in China 2025 program that aims to replace foreign technology companies and capabilities — often American — with Chinese alternatives. A top priority for the Trump administration — no matter how relations with China work out on North Korea — should be to address with dispatch China’s relentless, market-closing strategy, particularly in the information and communications technology sectors that underpin internet-related goods and services.