Dive Brief:

• China said it is once again working on banking cybersecurity regulations it suspended earlier this year, telling U.S. tech companies — including IBM, Microsoft and Cisco Systems — that it will seek opinions on a new version.

• Experts say the move is an attempt to placate a potential source of friction before president Xi Jinping’s visit to Washington in September.

• The previous regulations required Chinese banks to buy only domestic IT equipment and Western tech vendors to disclose secret source code if they sold to Chinese banks.

Dive Insight:

China’s previous version of the regulations drew opposition from foreign businesses and the U.S. and European governments, who say they are “protectionist measures that unfairly exclude foreign products and potentially violate China's obligations as a member of the World Trade Organization.”

Western companies, which previously profited tremendously from selling a wide variety of technology to China’s banks, say they doubt that a revision will help reverse falling sales.

"Their attitude and approach were good, but there's not much optimism," said an individual who attended the meeting. "What matters is how the sales numbers look."

Technology issues such as cyber security disputes will likely be on the agenda during Xi's White House visit.