China has decided that foreign devices will disappear from all government institutions and state-backed enterprises. 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 remove foreign devices from the most sensitive and sensitive areas.
Bloomberg, citing anonymous sources, reported that after the May holiday, employees of key sectors were asked to donate foreign equipment to be replaced by local companies.
Dell and HP will suffer the most
The decision to dispose of foreign equipment is accelerating the decade-long process of shifting away from the technology of China’s geopolitical rivals.
And 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 domestic product Lenovo, Huawei and Inspur, as well as the product of Kingsoft, whose products can replace Microsoft or Adobe products, will benefit.
– Lenovo could significantly increase Beijing sales to get central government agencies and state-backed companies to replace foreign-branded computers. The domestic No. 1 computer maker relies on American chips, but has set up its own chip manufacturing unit and has invested in at least 15 semiconductor design companies, says Nathan Naidoo, an analyst at Bloomberg Intelligence.
It is not a quick and simple process
According to a source in Bloomberg, the campaign from the central level will extend to the provinces. In this case, the two-year time frame will also apply.
The process of replacing computer hardware and software encountered many problems. It turned out, among other things, that Chinese software did not meet expectations, which prompted users to use imported equipment. Currently, domestic companies Lenovo and Inspur have gained a share in the global market, which means that the problems with Chinese equipment are slowly disappearing. But the problem is that they rely on the latest American components like Advanced Micro Devices for semiconductors. So moving away from key parts made in the US is another time-consuming task for the Chinese market.
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