China Orders Government Agencies to Replace All Foreign PCs

Officials in Beijing have ordered all public institutions and government officials to replace computers that use foreign hardware or software, the Financial Times reports. The government wants these agencies to replace them with local alternatives, and to do so within the next three years.

Beijing orders state offices to replace foreign PCs and software https://t.co/sl9GAgKkDG

— FT Technology News (@fttechnews) December 8, 2019

Self-Sufficiency in Technological Growth

The directive, which the government has dubbed “3-5-2,” is in line with its mission to achieve measured growth in its level of technological self-reliance, especially when it comes to equipping public agencies and government organizations. Per the report, the government is looking at replacing up to 30 percent of the total foreign hardware and software in the inventories of these organizations by the end of 2020. The target increases to 50 percent for 2021, then by a further 20 percent to close out the three-year period. Of course, the motive for this isn’t difficult to see at all. China is in the midst of a trade war with the United States, and Washington has shown its willingness to step on Chinese companies by suspending their licenses or halting their operations within the U.S. just to get the upper hand. Up until now, big Chinese tech companies such as Huawei and ZTE have been affected one way or the other by American policies, with Washington taking measures steps to stifle them. Now, China is simply pushing back.

Laying the Groundwork for Self-Reliance

Last week, BeInCrypto News reported on the increase in Chinese imports of semiconductors and materials used in making integrated circuit chips. China has reportedly imported $1.7 billion worth of chips in August 2019, the highest levels since October 2017. Adding this to the inventory that they already have, it is now expected that the Chinese will be able to ramp up production of their own versions of this critical hardware. Thus, the government gets to enhance the growth of its local manufacturing industry, while also gutting foreign tech firms who sell to the country. Undoubtedly, this move will place a strain on several American tech firms. In 2017, Microsoft released a version of its Windows 10 software that was tailored to the needs of the Chinese government. Several American tech firms, including Hewlett-Packard and Dell, are also known suppliers to Beijing. The directive might not have much of a far-reaching impact, as it doesn’t cover private companies. However, it also shows the extent to which the Chinese government might be willing to go to get its own pound of flesh.

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