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"For more than half a year, we have had several negotiations with Microsoft. We hope that Microsoft can achieve localization in accordance with China's laws and regulations, but the negotiations have yet to come to fruition," said Shen Changxiang, the person in charge of the Microsoft Cyber Security Review. "Every time the struggle is fierce, we must uphold cyber security sovereignty. Microsoft is not just a commercial company; its decisions also require approval from the United States." Our reporter Chen Baoliang reports from Beijing. The State Administration for Market Regulation (SAMR) has made new progress in its antitrust investigation against Microsoft. Recently, experts interviewed by reporters stated: "Microsoft's practice of bundling Trusted Computing Architecture in its operating system may violate the Anti-Monopoly Law. The Windows 10 OS should separate trusted computing." Trusted Computing, introduced in the 1990s by the International Fault Tolerant Computing Conference, is a new computing model that combines computation with protection. More than 200 companies worldwide are promoting its development. Microsoft launched the Trusted Computing (TwC) program in 2002 and included it in Vista, Win 8, and Win 10, but not in XP or Win 7. In the EU’s antitrust investigation, "bundling" was a key issue, focusing on Microsoft's market dominance before 2000. However, the EU did not include Trusted Computing in its investigations, as it was introduced after that period. Currently, China’s trusted computing products are mature on XP and Win 7 systems. "But Microsoft monopolizes the PC market. If Win 10 is equipped with its own trusted computing, China’s industry will lose the chance to enter the market," said Ni Guangnan, an academician at the Chinese Academy of Engineering. He suggested that Microsoft should provide a version of Windows 10 without trusted computing and face similar fines as the EU did. Ni emphasized that the review of bundled trusted computing should take precedence over browser and antivirus bundling. "This not only affects the industry but also threatens China’s network security." China’s trusted computing was officially established in 1992 and has since developed independently in areas such as password schemes, control modules, motherboards, and network connections. Shen Changxiang, an expert in cybersecurity, explained that trusted computing offers active defense compared to traditional firewalls and intrusion detection systems. It supports cloud computing and IoT with features like identification, status measurement, and secure storage. In 2014, over 60 domestic enterprises formed the Zhongguancun Trusted Computing Industry Alliance to promote its development. China’s independent trusted computing has been applied in critical systems like the State Grid and CCTV. Trusted computing has also been used to harden Windows XP and Win 7 systems, with good results in government departments. However, after Microsoft bundled trusted computing in Vista, Win 8, and Win 10, domestic products became incompatible. Shen warned that if Win 10 includes trusted computing, the domestic industry could be wiped out. Trusted computing is not essential for operating systems. Linux and Apple systems do not bundle it. Ni pointed out that trusted technology can be deployed across various systems and devices, not just PCs. Microsoft’s bundling limits the entry of other products and hinders broader applications. As of now, Microsoft has not responded to the reporter’s interview request. Microsoft Localization? It should be noted that Microsoft’s bundled trusted computing not only affects the domestic industry but also threatens China’s network security strategy. While it remains uncertain whether the SAIC’s antitrust investigation will address this, the cybersecurity review of Microsoft’s trusted computing is reaching a critical stage. "When Vista introduced trusted computing in 2006, we discussed it and decided to ban government procurement of Vista. Similarly, Win 8 was also banned, while Win 7, which didn’t include it, was included in the procurement catalog and dominated the market," Shen recalled. "After the release of Win 10, we had detailed discussions with Microsoft. Although Win 10 is more secure than Win 8, we want to introduce it only if it meets our laws and standards," Shen said. Win 10 must comply with China’s "Electronic Signature Law" and "Commercial Password Management Regulations," but currently, its technical standards do not meet these requirements. "For more than half a year, we’ve had several negotiations with Microsoft. We hope it can localize according to China’s laws, but so far, no agreement has been reached," Shen added. "We must uphold cyber security sovereignty. Microsoft is a commercial company, but its decisions need U.S. approval." In fact, more than a decade ago, Microsoft was close to localization. In 2003, it partnered with Chinese companies to establish a source code viewing laboratory and authorized seven institutions, including the Ministry of Public Security Third Research Institute, to access the OS source code and develop a localized version. Shen recalled, "At the time, we invested heavily. When the product was about to launch, Microsoft said, 'Sorry, failed to pass U.S. government approval.' They only compensated millions, and many efforts were lost." "Now, Win 10 can collaborate with China’s local trusted computing industry to achieve localization. This is technically, commercially, and legally feasible—win-win," Shen said. "Now we just wait for Microsoft to get U.S. approval."
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