China has agreed to delay implementing new bank technology restrictions that the U.S. has complained puts unfair regulatory pressure on foreign firms. China said earlier this month that it was working on a draft anti-terrorism law that would require foreign companies to provide encryption keys or otherwise facilitate China in bypassing security measures.
The action followed an earlier set of draft financial sector regulations that pushes China's state-owned banks to buy technology from domestic vendors.
After meetings between US Treasury Secretary Jack Lew and Premier Li Keqiang and other senior Chinese officials, a US Treasury official said Monday in Beijing that China was suspending the regulations that applied to the banks.