The requirement, which applied to 13 product types, was due to come into effect this month. But in a formal notice issued late last month, the China government announced that its introduction would be postponed until May 2010. The Shanghai office of law firm Pinsent Masons,  subsequently received confirmation from China's certification agency that the scheme will be restricted to those products being supplied to the government.

Suppliers to companies and consumers in China will not need to comply with the China Compulsory Certification (CCC) scheme, according to the Certification and Accreditation Administration (CNCA).

European trade body EICTA, whose members include Cisco, Dell, Fujitsu, Microsoft, Apple, Oracle and Intel, accused China of erecting "unnecessary obstacles to international trade." EICTA said that the government had failed to articulate any legitimate policy objective by introducing the measures.

"There is no other country in the world that relies on national security standards and related conformity assessments because there are global standards already in use today," it said in a position paper last June.  "No country has ever regulated the sale or importation of computer security products for the commercial market in the manner proposed by the Chinese regulations."

Following the criticisms from EICTA and others, the CNCA announced that the CCC scheme would be delayed. It issued a formal notice of adjustment on 29th April – but that notice was ambiguous, according to technology lawyers in the Hong Kong and Shanghai offices of Pinsent Masons.

"The one-year delay gave some breathing space to vendors, but what wasn’t clear was the scope," said Hong Kong lawyer Stephanie Wong  "We've now had confirmation from CNCA that the scheme will be scaled back drastically, meaning it applies only to public procurement. Clearly that will be a great relief for suppliers."

William Soileau, a Shanghai lawyer, said some of the measure's original uncertainty remains for products subject to government procurement. "We still don't have a clear picture of which products are covered and which ones are not, because the definitions are vague. We don't know what disclosures will be expected of vendors, or how their trade secrets will be protected during the third party testing procedures," he said.

"To the extent that their products do not comply with China's national standards, IT suppliers engaged in government supply will be forced to develop China-specific designs and products compliant with the CCC procedure," he concludes.

China's black market protection - price!
A whole black market industry has been riding on Apple’s success by selling fake copies in China and Taiwan under the name iOrange  or Hi Phone.

According to the New York Times,  the fake iPhone in Beijing costs $150 to purchase and $40 to produce. Its most expensive piece is the circuit board and the Bluetooth chip which totals under $21.

Other component in the fake cost just a few cents and production houses that produce the average fake use the same supply chains that Apple sources, so basic parts on the fake phones like microphones, vibration motors and speakers are identical to the real one.

Pinsent Masons' technology lawyers in Shanghai and Hong Kong are seeking further information from CNCA and others. Interested parties should email William Soileau in Shanghai or email Stephanie Wong in Hong Kong