China orders central government agencies and state-owned enterprises to abandon foreign computers, for domestic computers running locally developed software

China has ordered central government agencies and state-backed companies to replace foreign-branded personal computers with domestic alternatives within two years, marking one of Beijing’s most aggressive efforts to date.

After the May holiday week, employees were asked to replace foreign computers with local computers running locally developed operating systems, people familiar with the project said. They said the exercise, which was mandated by central government authorities, is likely to eventually replace at least 50 million CPs at the central government level alone, and asked not to be named to discuss a sensitive issue.

In an effort to support domestic computer makers and software developers and reduce the impact of potential sanctions from Western governments, the Chinese government has reiterated its order to replace foreign-branded personal computers and software used by agencies. Governments and state-backed enterprises with domestic technologies within two years.

Lenovo is a Chinese company that manufactures computers and computer servers, among other things. Founded in 1984 by Liu Chuanzhi, the brand became known worldwide in 2005 when it acquired IBM’s PC division, thus becoming the world’s leading PC manufacturer.

The Chinese Academy of Sciences, and therefore the Chinese state, is still the largest shareholder with 15% of the capital, ahead of the US investment funds entered during the merger with IBM’s PC subsidiary. While replacing Dell’s Windows with Lenovo’s Linux seems tempting to Chinese companies, it seems the country hasn’t been able to do so yet, but this new initiative appears to have more benefits.

There are several reasons why the Chinese government wants to switch to indigenous technologies. First, he wants to keep Chinese money in China and not see it flow into foreign companies. Second, having learned a lesson from Huawei’s campaign, it wants to make sure it doesn’t rely on technology developed and built elsewhere. More specifically, a technology whose import into China could be banned.

Remember that because of the Russo-Ukrainian war, Western companies were forbidden to do business with Russia: this was followed by a wave of contract breaches without warning with Russian companies. Thus, it became difficult for all those Russian companies that put their faith in Western technologies or companies.

The vast majority of computers sold in the world are assembled in China, but they carry brands of American or European origin. The Chinese government and government organizations also use Dell and HP branded computers made in China. However, it seems that Beijing only wants to see domestic brands such as Lenovo, Inspur, founder, Tsinghua Tongfang in the offices of state and state-owned companies.

SAP halted all sales to Russia at the beginning of March, in accordance with international sanctions. Enterprise software giant SAP said it would suspend all sales in the country. Economic sanctions against Russia are an important mechanism in efforts to restore peace. SAP said: “We have stopped all coordinated activities in Russia, and in addition, we have stopped all sales of SAP services and products in Russia.”

On March 14, Oracle tweeted that it had left Russia, leaving existing customers without software updates or support. Besides implementing sanctions and halting all sales, we are actively working to shut down cloud computing operations in Russia. We have received questions about SAP’s ability to discontinue all existing products for Russian customers. Some Russian customers have purchased and deployed their SAP products on premises and use them in their IT department. This means that regardless of any decision by SAP not to provide support or commitment of any kind, these customers can still use these products independently of SAP.

We have taken a number of steps in response to this Russian military operation against Ukraine. We have stopped all sales of products in Russia. Last week, we stopped all exports to our sales channel in the country. Apple Pay and other services are restricted. RT News and Sputnik News are no longer available for download from the App Store outside of Russia. “We have disabled live traffic and accidents in Apple Maps in Ukraine as a precaution and safety measure for Ukrainian citizens,” says US technology giant, Apple.

Google and YouTube recently stopped selling online ads in Russia, following a similar comment by Twitter and Snap following Moscow’s invasion of Ukraine.

To some observers, these sanctions could help bolster Russia’s capacity for autonomy and send a warning signal to other dictatorships about Westerners’ ability to make controversial decisions.

As one of the world’s largest, if not the largest, PC manufacturers, Lenovo can certainly produce enough computers to meet the demand of central governments, and eventually local governments and state or government-supported companies. Companies like Founder, Tsinghua Tongfang, and Hase can certainly increase their production as well. Domestic electronics manufacturing service (EMS) providers such as Foxconn Technology will certainly be happy to help and compensate for the decline in China-restricted PC orders from brands such as Dell and HP.

Dell is the US company’s third largest computer manufacturer in the world in 2012 after Hewlett-Packard and Lenovo. It is headquartered in Round Rock, Texas. Although Dell Computer is best known for the computers it designs, manufactures, and sells to individuals and professionals, it is also found in the enterprise server markets, data storage and backup systems, and hardware for PC and computer networking.

In fact, shares of Chinese computer manufacturers rose on several stock exchanges, no doubt buoyed by the impending huge orders from government agencies and state-owned companies over the next two years. It remains to be seen whether the Chinese PC brands will begin to use the domestically developed processors more actively (the new system does not force them to do this).

However, considering that these chips can hardly compete with AMD and Intel designed hardware, this is really unlikely. US CPU developers may be missing out on some lower-quality CPU orders from China’s PC makers to companies like Zhaoxin. However, due to the increasing demand for high-end client and server processors in general, this will not affect them much.

the biggest challenge

In general, the manufacture of Chinese brand computers is not a problem for Chinese manufacturers. The biggest challenge and one of the main reasons why China is still dependent on foreign technology is to replace US and European programs with Chinese alternatives. There are a number of Linux distributions developed in China, such as Red Flag Linux designed by Red Flag Software and Kylin developed by the National University of Defense Technology, which can replace Windows and/or foreign Linux distributions for some users.

There are also Office alternatives from Microsoft and some other commonly used applications, such as Photoshop from Adobe. Although the alternatives are not as comfortable to use as the originals and their capabilities are often inferior to the originals, they can still do the job (but not in all cases).

The problem is that there are many professional programs that have been in development for decades that do not have alternatives that offer similar capabilities and functionality. Software used for content creation, computer-aided design (CAD), electronics design automation, professional visualization (ProViz), video editing, video post-production, and many other applications are almost irreplaceable.

That is why media and security companies obtained special permits to purchase foreign equipment. Meanwhile, the Chinese government not only wants its employees to switch to Chinese programs, but also demands that state-owned and state-backed companies stop using US and EU programmes.

State-supported companies, which are officially independent but receive support directly or indirectly from central and local authorities, include entities such as Semiconductor Manufacturing International (SMIC) and Tsinghua Unigroup, which owns YMTC, a NAND manufacturer. These companies not only use software from companies like Microsoft and Synopsys in their offices, but also software from US and European companies in their factories.

For companies like SMIC and YMTC, replacing foreign software with software developed in China will inevitably affect not only their ability to compete, but also their ability to actually operate. In fact, even blacklisted entities that cannot officially purchase from US-based companies are still using software developed in America.

Hardware and software technologies developed in the United States and Europe have largely enabled China to achieve impressive economic growth in recent decades. Thus, the passage of Chinese-branded computers is not a big problem, but the passage of Tianxia-developed software will inevitably affect the competitiveness of Chinese state-owned enterprises and state-backed enterprises, which will affect economic growth. To this end, most Chinese state-owned and state-backed companies are likely to obtain permits to continue buying foreign technologies and supporting their growth.

And you?

What do you think of China’s decision to abandon foreign computers?

See also:

Apple stops all product sales to Russia, stops exports and limits Apple Pay, in response to the launch of a Russian military operation in Ukraine

SAP announced Tuesday that it is pulling out of Russia after 30 years in the country, leaving local customers without software support.

Oracle and SAP Suspend Operations in Russia Due to Invasion of the Country, Economic Sanctions Against Russia Will Be an Important Mechanism in Peace Restoration Efforts

YouTube and Google Play suspend all payment-based services in Russia, including subscriptions, and Western sanctions begin to cause banking problems in the country

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