China has decided that foreign hardware will disappear from all government institutions and state-supported companies. According to preliminary data, 50 million devices will be decommissioned.
The process of replacing computers with domestic brands is expected to take two years. Beijing explains its decision by wanting to eliminate foreign devices from the most key and sensitive areas.
The Bloomberg agency, which cites anonymous sources, reports that employees of key sectors after the May break were asked to donate foreign equipment to be replaced with local companies.
Dell and HP will suffer the most
The decision to eliminate foreign equipment is accelerating the decade-long operation to shift away from the technology of China’s geopolitical rivals.
US companies such as HP and Dell Technologies will suffer the most. They are the biggest players in the Chinese PC market. On the other hand, the local producer Lenovo, Huawei and Inspur, as well as the producer of Kingsoft software, whose products can replace those of Microsoft or Adobe, will benefit.
– Lenovo could dramatically increase Beijing sales to get central government agencies and state-backed companies to replace foreign-brand computers. Domestic computer maker # 1 relies on US chips, but has set up its own chip manufacturing unit and has invested in at least 15 semiconductor design companies, says Bloomberg Intelligence analyst Nathan Naidu.
It’s not such a quick and simple process
According to a Bloomberg source, the campaign from the central level will be extended to the provinces. In this case, the two-year time frame will also apply.
The process of replacing computer hardware and software has encountered many problems. It turned out that, among others, Chinese software did not meet expectations, which prompted users to use imported equipment. Currently, local companies Lenovo and Inspur have gained share in the global market, which means that the problems of Chinese equipment are slowly disappearing. The problem, however, is that they rely on state-of-the-art US components such as Advanced Micro Devices semiconductors. Moving away from key US-made parts is therefore another time-consuming task for the Chinese market.
MP
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