China freezes out foreign tech companies

China has removed many of the top Western tech companies from its approved state purchase list in a possible response to the ongoing revelations of U.S. digital surveillance efforts, Reuters reports.

Others believe the move is simply a continuation of China’s desire to control state-purchased technology operating domestically.

{mosads}Companies like tech giant Apple, equipment maker Cisco Systems, security firm McAfee and software company Citrix Systems have all been dropped from the approved list since 2012.

Overall, Reuters reported the number of approved foreign tech firms fell by a third in that time span, with security-related companies hit especially hard.

The trend is likely a reflection of the increasingly chilly cyber relationship between the U.S. and China.

The U.S. has repeatedly called out China for hacking American businesses and the government itself. The Justice Department even indicted five members of the Chinese army for hacking.

But China has pushed back, arguing the National Security Agency’s (NSA) extensive hacking and surveillance efforts are hypocritical.

Official cyber dialogue between the two nations has essentially come to a halt.

The stand off has spilled into the business world. China is reportedly moving forward with new cybersecurity rules that would require Western companies to let Beijing officials inspect their code.

Tech trade groups have appealed to Chinese and American officials, trying to stall the rules from going into effect.