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In a potentially stinging blow to US computer makers such as Dell, HP and Microsoft, and an ominous development for all those who think the US-China trade war is about to come to an end, the FT reports that Beijing has ordered all government offices and public institutions to remove foreign computer equipment and software within three years.
While the US has been extremely vocal over the past year about banning US companies from using Chinese technology, mostly emerging from the Huawei ecosystem, the directive is “the first publicly known instruction with specific targets given to Chinese buyers to switch to domestic technology vendors” and is meant to echo efforts by the Trump administration to curb the use of Chinese technology in the US and its allies.
The order is said to have come directly from the Chinese Communist party’s Central Office earlier this year.
Additionally, the FT notes that the move is part of a broader campaign to increase China’s reliance on home-made technologies, “and is likely to fuel concerns of “decoupling”, with supply chains between the US and China being severed.”
The big irony here is that it was IBM’s sale of its PC group China’s Lenovo in 2004 that allowed China to develop its own PC architecture and supply chain, and effectively reverse engineer US dominance in the PC sector.
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