A new law in China will allow that country's government to request source code and other intellectual property of companies doing business there. According to a white paper from Recorded Future, describes the possible effects of the law and offers suggestions for companies on complying with its requirements.
I see a lot of companies maybe stopping business with China for this. I don't know of any US based business that will hand over source code to a foreign government. They wouldmn't even give it over to our Federal government. Concerning to say the least. Bad move on China's part but I guess we will see how it all plays out.
The irony is that the Chinese have been collecting the source code through covert channels and reverse engineering for long time (location: Pudong district of China - People's Liberation Army's Shanghai-based Unit 61398)