China to Ban All Foreign Tech? Take a Look Again!

Source: CNBC

China has ordered all state offices to remove foreign hardware and software within three years, the Financial Times reported, in a move which could hit major U.S. firms including Microsoft, Dell and HP.

The policy has been dubbed 3-5-2 because the replacement of the technology will happen at a pace of 30% in 2020, 50% in 2021, and 20% in 2022, the newspaper said, citing a note from brokerage firm China Securities. Analysts there estimate that 20 million to 30 million pieces of foreign equipment need to be replaced in China.

Beijings directive to remove foreign hardware and software may not be straightforward. While a company like Lenovo is Chinese, it uses chips from American supplier Intel. And China doesnt really have a homegrown alternative to Microsofts Windows. Huawei released its own operating system called HarmonyOS earlier this year, but its unclear whether it would be suitable.

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