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China Restricts US-Made Microprocessors and Servers in Government Computers

Kalyani Jha
25 Mar, 2024

China has taken a significant step towards bolstering its domestic technology sector by imposing limitations on the use of US-made microprocessors and servers in government computers. The move, unveiled through new guidelines by the Chinese finance ministry and the Ministry of Industry and Information Technology (MIIT) in December 2022, aims to replace chips from American firms like Intel Corp and Advanced Micro Devices Inc. with locally developed alternatives, as reported by The Hindustan Times.

The guidelines also indicate a shift away from software provided by companies such as Microsoft Corp., with plans to replace these software solutions with domestic options. However, there is some flexibility in allowing government agencies and state-owned enterprises to continue using computers powered by foreign processors and servers, as noted by two unnamed procurement officials mentioned in the report.

China's efforts to phase out foreign technology from critical sectors have been ongoing, with a specific focus on sensitive areas. In 2022, Beijing mandated central government agencies and state-backed corporations to transition from foreign-branded personal computers to domestic alternatives within a two-year timeframe.

This latest development occurs amidst escalating tensions between China and the United States, particularly regarding technological dominance, notably in the semiconductor industry. Reports suggest that the US is contemplating blacklisting several Chinese semiconductor firms associated with Huawei Technologies Co., marking a potential escalation in efforts to curb Beijing's advancements in artificial intelligence and semiconductor development.

The global technology landscape is witnessing increased competition and geopolitical complexities, making China's emphasis on local alternatives in government systems a strategic move. By reducing reliance on foreign technology, China aims to strengthen its domestic capabilities and assert its position in the evolving tech arena.

As the situation evolves, the dynamics between China, the US, and other key players in the technology sector will continue to shape the future trajectory of technological innovation and global competition.