U.S. technology companies looking to do business with China will have to choose between an increasingly restrictive business environment and the lure of a market they cannot afford to ignore. Last week, a Chinese parliamentary body discussed the draft of a sweeping counter-terrorism law, under which technology firms that operate in the country must hand over encryption keys and install security “backdoors.” Firms would also have to keep their servers and user data within the country, censor terrorism-related web content and submit communications records to law enforcement authorities. The new legislation could take effect in weeks. “The growth potential [in China] is huge and ultimately, it’s a business calculation [for U.S. technology companies],” said Wharton management professor Minyuan Zhao .…