The Chinese government has banned the use of foreign-made hardware and software in government and public institutions. According to a government decree earlier this year, the aforementioned organizations must replace foreign computers and software with domestic counterparts within three years.
According to estimates by China Securities analysts, as part of the government decree, about 20-30 million units of computer equipment will have to be replaced, and the beginning of the mass replacement will be in January next year. The replacement will be carried out according to the “3-5-2” scheme: in 2020, 30% of the equipment will be replaced, in 2021 – another 50%, and in 2022 – the remaining 20%.
Obviously, this step is a response to the sanctions imposed by the US government against Huawei, a large Chinese telecom equipment manufacturer. Failure to use foreign computers and programs in China could adversely affect US companies such as HP, Dell and Microsoft. According to analysts from Jefferies, the income of American companies from the Chinese market is about $ 150 billion, however, most of this money comes from the private sector.
The ban is part of a larger campaign by the Chinese government to increase China’s dependence on domestic technology, and will further worsen economic relations between the US and China, SecurityLab reports.