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Replace Foreign Computers And Software – Beijing Order

The Chinese have ordered all government offices and public institutions to remove foreign computer equipment and software from their offices within three years. The move is seen as a major blow to US PC and software makers such as HP, Dell and Microsoft.

Government offices have been told to switch to Chinese technology vendors, and echoes efforts by the Trump administration to curb the use of Chinese technology in the US and its allies.

The policy — which reportedly affects both hardware and software — could strike a big blow to American tech companies such as Microsoft, HP and Dell.

The directive from the Chinese Communist Party’s Central Office will force the replacement of 20 to 30 million pieces of equipment, the Financial Times reported Sunday, citing an analysis from the brokerage China Securities.

The order is known as the “3-5-2” policy because 30% of the affected devices would be replaced next year, 50% would be swapped out.

The move is part of a broader campaign to increase China’s reliance on home-made technologies.

Analysts estimate US technology companies generate as much as US$150 billion a year in revenues from China, although much of that comes from private sector buyers.

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