In a bid to establish its autonomy and lessen its dependence from foreign technology, China is mandating its central government agencies and state-owned enterprises to replace foreign-labeled personal computers in favor of local alternatives in the span of two years.

The move, once enacted, shall see more than 50 million PCs being replaced by local brands, such as Lenovo or Inspur Ltd., at the central-government level.

Meanwhile, on the software level, the strategy insinuates the promotion of locally-made operating system or with the use of an open-source option, like Linux, instead of Microsoft Windows, as well as domestic programs with Kingsoft and Standard Software at the forefront. However, hard-to-replace hardware, like Intel or AMD’s microprocessors, will remain an integral part of the country’s technology-based system.

Aside from bolstering its stance towards technological independence, everything appears to boil down to concerns over information security as well as its growing confidence in its locally cultivated components.

With both Hewlett-Packard Enterprise Co. and Microsoft seemingly affected by the communist government’s maneuver, the two companies are wanting to remain relevant in the massive Chinese market. An opportunity of which they are seeing by building partnership with significant state-owned companies.

Source: Bloomberg



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