Chinese government ordered to ditch foreign PCs

Chinese central government agencies and other public organizations have two years to phase out PCs, laptops and other hardware made by foreign companies and replace them with domestic hardware.

Some government workers were asked to make the jump when they returned to work after a week-long hiatus earlier this month, according to reports.

The mandate requires organizations to phase out both foreign hardware and software, and with as many as 50 million endpoints at stake, companies like HP or Dell stand to feel the impact.

Household hardware

But software vendors also stand to lose a lot. Reports indicate that China will most likely focus on Linux-based operating systems to replace Microsoft Windows. Apparently, Shanghai-based Standard Software is one of the companies that could facilitate the move.

For the time being, the order only concerns computers, while difficult-to-replace components, such as microprocessors, have been excluded. Chances are they will be covered in the near future. The government should also force provincial governments to do the same, soon.

Some businesses could be exempt from the order, if they get a special permit, it was said. While at first it might be relatively easy to obtain such a permit, Bloomberg sources believe it will gradually become more difficult to obtain.

Since the Trump administration blacklisted Huawei and ZTE over 5G-fueled spying fears, the Chinese have been scrambling to reduce their reliance on foreign hardware and software. ZTE had one foot in the grave back then as Huawei was forced to develop and distribute an all-new mobile operating system after losing access to Android.

Now, as things heat up even more on the global geopolitical scene, the Chinese are going one step further with their plan for total technological independence.

Lenovo, a Chinese hardware maker that probably stands to gain the most from this development, saw its shares rise 2% on the day to $0.9.

Via: Bloomberg

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