Beijing orders officials to replace ALL foreign PCs and software

US President Donald J. Trump

US President Donald J. Trump

While at first glance the migration off foreign software and hardware could be a huge blow to American companies like Microsoft, it's important to know that all these firms will still be allowed to sell their products to customers in the private sector.

The FT reported that the directive would result in an estimated 20m- to 30m pieces of hardware needing to be replaced and that this work would begin in 2020. The analyst firm said it would happen at around 30% replacement in 2020, 50% in 2021, and then 20% in the remaining year in 2022.

Neither China Securities nor the Chinese State Council immediately responded to The Post's emails seeking comment Monday morning.

The government under President Xi Jinping has been trying for years to replace technologies from overseas, and particularly from the United States. The most well-known example in this case is the Huawei ban, which was announced after the USA government classified the Chinese company as a national security threat.

Things are different this time though, because of the increasingly strained relationship between China and USA under President Donald Trump's administration. The US alleged that the company was using modern technology for espionage. The trade war only accelerated this trend, with the US government banning Huawei and other Chinese companies from selling technology to USA federal agencies.

The ZTE restriction has since been lifted, but the us has continued to blacklist other Chinese companies.

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It is estimated that U.S. technology companies make $150bn in revenues from China.

In the coverage of the government's order, it has been noted that it may be hard for China to define "domestically made" technology products.

China has previously ordered purges of western software, but they were more limited or related to certain security issues; there were efforts five years ago to wean the country off Android and Windows, but ultimately they proved abortive. Microsoft customized a version of its Windows 10 software exclusively for the Chinese government's use in 2017.

US companies like Google and Facebook have been blocked from operating in China for several years.

Computer users in China are already unable to access many US-made platforms from within the country due to the so-called Great Firewall of China.

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