China is reportedly purging all US-made software and hardware from its government offices as retaliation for the US' previously imposed restrictions on the use of Chinese technology. According to reports citing sources close to the matter, China had apparently issued an order to all public institutions and government offices for them to immediately remove computer equipment and software made by foreign companies.
The country's move to halt the use of US-made hardware and software will likely deal a big blow to US-based multinational companies, especially those who generate the bulk of their revenues from the Asian market. Companies such as Dell, HP, and Microsoft are all likely to lose a lot of their revenue streams following the ban.
The order mirrors the United States' recent limitation on the use of Chinese equipment and services as part of its plan to add pressure to China to force a trade deal. Just last month, the US issued an order to prevent agencies from buying equipment and services from Chinese firms such as Huawei Technologies using the government's $8.5 billion-fund.
The order was given by the country's Federal Communications Commission (FCC), which limited the use of the country's Universal Service Fund. The fund was established by the US to boost its telecommunication and broadband internet services.
Earlier in the year, the Trump administration ordered all US companies to halt their transactions with Chinese firms found to be a threat to national security. This effectively cut major Chinese firms such as Huawei from its US suppliers.
China's public directive to halt its use of foreign technologies is part of its wider plans to decrease its reliance on foreign-made software and hardware. The directive is also aimed at boosting the country's reliance on domestic technologies, which would hopefully result in further developments within the sector.
Analysts estimate that the order to remove all foreign hardware and the software would likely equate to the removal and replacement of more than 30 million pieces of equipment. The order had reportedly come from the Chinese Communist party's central office, with the goal of being fully self-reliant by 2022.
Replacing all of its software and hardware will definitely be a challenge for Chinese government offices as most of them do use foreign-made core systems such as Windows. While most offices do already use desktop computers made by Chinese firms, the components inside such as processors and hard drives are made by US companies such as Intel, Invidia, and Seagate.
