period has been granted and this extends the compliance deadline for a few WLAN
products until June 1, 2004 [6].
The recently announced Chinese WLAN standard is very similar in many
ways to the IEEE's 802.11 wireless networking standard but the one important
difference is that it uses a security protocol, called WLAN Authentication and Privacy
Infrastructure (WAPI). WAPI is not part of the 802.11 standard, since the IEEE
standard relies on Wired Equivalent Privacy (WEP). However, if there are two
different WLAN standards in existence, one for China and one for the rest of the
world, this could cause the market for wireless networking equipment to splinter in
two [6].
WAPI uses a block cipher for encryption and an authentication mechanism
that appears to be similar to the IEEE 802.1x standard, which is part of the upcoming
IEEE 802.11i security standard. Diagrams shown during technical discussions with
Chinese officials indicated something like a RADIUS (Remote Authentication Dial-In
User Service) server being used for authentication and in addition, they seemed to
show a central RADIUS system for authenticating all users on all WLANs in China
[6]. This is possibly a method of monitoring all wireless devices being used in China.
In addition, this new Chinese specification will possibly cost more and be
harder to integrate into portable devices like PDAs and phones since it will probably
require more memory. This might also affect the entire notebook market since it will
have an effect on other products that utilize wireless networking. To make matters
worse, if a foreign vendor wishes to produce a product that complies with this new
Chinese standard then they have to sign coproduction agreements with a limited
number of specifically designated Chinese companies, which China justifies by citing
national security concerns. However, the foreign company would have no control
over what goes inside these security products, which obviously raises liability
questions, and of course the Chinese company might simply delay production for the
foreign company giving alternative Chinese manufacturers an unfair advantage. Even
more worrying is that these Chinese firms might demand full disclosure of the foreign
technology, claiming it is impossible to implement WAPI without this information
[6].
Since China is the most important developing economy in the world and it
accounts for a large portion of manufactured goods, including high-tech products,
China will in the next few years, become a major power in engineering and
technology. One method of establishing a country for a position of leadership in
technology is to set national standards that are incompatible with what the rest of the
world is doing. What in effect this does is that it forces everyone else to deal with
technologies that are otherwise unnecessary and this can be used to protect domestic
industries [7].
What is happening is that the world’s most populous nation, with the world’s
fastest growing economy, which will shortly be the second most important market for
computer products (after the USA) is flexing their muscles. This is not the first time
that China has done this as they have their own version of Linux called RedFlag, their
own CPU architecture called Dragon and just recently implemented their own
proprietary DVD standard. Perhaps this is also related to the Chinese government’s
effort to develop products that are not subject to the payment of patent royalties which
21