Business

China swaps 50 million foreign computers for domestic versions

China's national flag in Hong Kong.  Photographer: Paul Yeung/Bloomberg
Situation should affect direct sales of companies like HP and Dell

(Paul Yeung/Bloomberg)

  • China orders replacement of foreign-branded computers with domestic versions;

  • The central government has two years to adapt to the measure;

  • Decision must exchange at least 50 million devices.

China has ordered central government agencies and state corporations to swap foreign-branded computers for domestic options within two years. The measure should replace at least 50 million devices.

The decision marks another step taken by Beijing to reduce the technological dependence that its main bodies have on geopolitical rivals, such as the United States, for example. The goal is to avoid not just computers, but semiconductors, servers, phones, and others.

As reported by Bloomberg, agency employees must swap computers for local alternatives that run on internally developed operational software. Such a situation should affect the direct sales of companies such as HP and Dell, the largest in the country, and benefit China’s Lenovo – which can dramatically increase its sales, according to Nathan Naidu, an analyst at Bloomberg Intelligence.

future of measurement

For now, only the central government level will be covered by the change, but the goal is to later expand the campaign to regional governments. According to sources interviewed by Bloomberg, who preferred not to be identified, the term applied will be the same (two years).

In addition, some state media agencies and cybersecurity bodies may continue to purchase foreign equipment through special licenses. Still, there is a possibility that this will be revoked in the future.

Bloomberg tried to contact the Ministry of Industry and Information Technology and the State Council Information Office, but there was no response until the story was published.

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