How might China respond to Obama's new cyber regulations

Steve,

The executive order is a specific enforcement of existing FSO rules that must organizations doing overseas business struggle to comply with everyday, or at least when they have interaction with Foriegn Nationals on the restricted countries list.

The Chinese already use their market power as a way to control US companies and economic interests. Typically the local Chinese government will block existing development or future development if a particular company claims espionage. No company wants to be cut off from the world's largest market.

The US government will see the Chinese conduct spy counter-claims as we attempt to be more aggressive in policing their efforts.