A new funding law has been introduced by the U.S. government which prevents NASA and the Justice and Commerce Departments from procuring IT services developed by Chinese sources.

The new law prevents the departments from purchasing any IT products that has been produced, manufactured or assembled to any extent, by businesses that are subsidised, operated or owned by the Chinese state. The law will remain in force until September 30th 2013.

The legislation is the latest move by the U.S. in response to the alleged security threat that Chinese businesses pose to the western country.

The restricted agencies will only be able to procure goods and services from sources that have been given the all clear and pose no risk of cyber-espionage or sabotage.

China has been increasing linked to industry and state targets cyber-attacks, with the U.S. moving to openly confront China in a public domain.

The Chinese government has asked the U.S. government to remove the new laws, criticising their impact on international trade.

While the legislation will impact select U.S. government agencies and only be in effect until the end of September, the move hints at the pressure being brought into force against China, for its perceived role in cyber-warfare, with the U.S. threating to place a stranglehold on Chinese IT imports and services to the U.S., valued at $129 billion.

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