Di Li, Senior Consultant, atsec information security corporation
Please note: Di Li works for atsec, and is not speaking for the Chinese Government.
Their focus is on certifying both hardware and software, including HSMs and smart cards. In China, only certified products can be sold or used. They should be sold commercially. By law, no foreign encryption products can be sold or used in China.
Additionally use their own algorithms. Some are classified, others leverage international algorithms like ECC, others would be considered a competitor to algorithms like SHA2 or AES-GCM.
They have their own security requirements for cryptographic modules, but there are no IGs, DTRs, etc., so it is different. No such concept of "hybrid", either.
There are two roles in the scheme: OSCCA and vendor. OSCCA issues the certificates and they are also the testing lab. The vendor designs and develops the product, sell, and promote. They report their sales figures to OSCCA every year.
There are requirements to be a vendor as well! To get sales permission, you need to demonstrate you are knowledgeable in cryptography among other things.
Validations are updated every 5 years. As a part of this process, you additionally have to pass design review.
You cannot implement cryptography within a common chip , as there is not enough security in that chip.
Banking must use a certified products. The biggest market is USB tokens and smart cards.
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