Intel, the world's leading computer chip maker, today said it is optimistic of an agreement with China over its wireless security standard before June 1.

"We are still at discussion and we hope to resolve the matter before June 1," Craig Barrett, Intel's chief executive told reporters.

Intel had said earlier it would not comply with the new Chinese encryption standard for wireless security for its chips produced for mobile computers that access the Internet via "Wi-Fi" networks.

The talks concern the US company's newly issued wireless authentication and privacy infrastructure (WAPI) security standard.

Beijing has said that only Wi-Fi products that pass its test will gain certification allowing them to be sold after June 1.

Barrett said Intel meanwhile would continue to sell its Centrino products in the Chinese market until June 1.

"And then if there is no resolution, we will (only) sell the plantium end processor and the chip set in the Chinese market," he said.

Backed by the US government

Barrett said the Centrino mobile technology comes in three parts - processor, chip set and wireless technology.

But the Chinese government's policy has met with opposition from foreign companies such as Intel.

Asked if there would be any financial impact on Intel if it withdraws from China's wireless land area network (WLAN) equipment market, Barrett said: "It is too early to tell exactly what will happen."

Intel's Centrino chips are aimed at China, one of the fastest-growing markets in the hi-tech field.

The US government has backed Intel's position.

The United States last Thursday said China's attempt to impose its own technical security standard for wireless computer chips was "a matter of grave concern" that could result in a complaint to the World Trade Organization.

The US Trade Representative's Office, in a report on global barriers to trade, weighed in on the dispute, which is expected to shut Intel out of the Chinese market for the fast-growing wireless data network technology. - AFP