According to this report at The Register, there are some new government regulations about the import of certain security products into China, including Smartcards, firewalls and routers. While importing the goods, the importer needs to submit the technical details to a government panel in order to get the import license.
However, the article claims there are no further details on what exactly needs to be disclosed. Anyone who knows more details: I'd be more than interesting to hear about them - maybe there's even an English translation of the respective law or regulation?
I think it is a most reasonable policy that a country can adopt. Security products whose operation relies on its secrecy are useless anyway. The concept of security-by-obscurity has never worked and has been proven wrong many times, e.g. in the NXP Mifare Classic, DECT cipher/authentication, GSM A5 cipher and many other proprietary encryption schemes.
The only thing the Chinese regulators are doing wrong: According to their rules, the information must be disclosed to a closed government panel. Instead, they should require such information to be published publicly, or at least to be released in full detail to all customers of the respective product.