Chinese Wireless Encryption Standard Argument Assumes Political Overtones

by Paul Denlinger

Posted March 11, 2004

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Intel, the world's leading logic chip maker, rejected China's newly proposed wireless encryption standard on technical grounds, and US technical bodies and the government, have lined up against the new Chinese WAPI encrytion standard.

The new wireless encryption standard was endorsed by the Chinese government late in 2003, and the government issued a requirement that all Chinese makers make their products using the encryption standard beginning in June 2004. The WAPI technology competes directly with Intel's Centrino technology which includes a wireless transmission and encryption standard. Intel announced yesterday that it would not support the WAPI standard in its chipset designs.

Key to the American opposition is the fact that the Chinese government and 24 local companies have access to the core WAPI technology, and would have to share their technology to make their products conform to the standard.

In the past two years, China has been pushing its own standards for digital TV transmission and computer and device communications through the government's powerful Ministry of Information Industry. In all instances, the new standards were not opposed by American companies.

So why is the US opposition to WAPI so strong this time? The Chinese have remained largely quiet in the face of these complaints, and have been listening, which indicates that they are learning from the dispute and modifying their position.

From a business point of view, the Centrino standard has become an important part of Intel's business in laptop computers and wireless devices. But, the Centrino standard is evolving as broadband wireless technology evolves.

Pat Gelsinger, Intel's chief technology officer, who recently returned from a trip to China, said that WAPI used outdated technology.

Put simply, the WAPI encryption standard is an attempt to "freeze" a new technology and make it a standard too soon, before the new technology standards have had a chance to prove themselves in the marketplace.

For the Americans, it would be well-advised to argue the technological merits of the argument, without bringing in the big political guns, which would make the case more complicated.

Not supporting WAPI as a standard is fine, but it also opens a window to any new players who support WAPI. Now the question is whether the Chinese government will support the Dragon chip technology, which it controls, and add a WAPI chipset for wireless communications?

Or will they drop support for WAPI, and say that they want to give other standards a chance?

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