When we ask ourselves questions about technological sovereignty, China takes the subject much further than we do. As Bloomberg reports, the Chinese state has issued an executive order to key government agencies and state-backed companies that will have a massive impact. All computers and programs from abroad must be replaced by local alternatives within two years.
In total, China will have to replace more than 50 million PCs in two years, at the public sector level alone. However, figures for the myriad companies that must be considered state-backed in China are not counted here. In addition, the extension to provincial governments is also already planned. We are therefore talking about tens of millions of PCs to be replaced.
HP, Dell, Lenovo, Adobe… targeted!
Is this a decision taken after the Huawei embargo? This decision will hurt American manufacturers. The government specifically targets companies like HP and Dell, which are the country’s largest PC vendors after Lenovo. On the software side, companies like Microsoft and Adobe are also banned.
There are very large Chinese PC manufacturers, including Lenovo, Huawei and Inspur. On this side, China has enough to ensure distribution, despite the fact that PCs use American (Intel, AMD, Nvidia, etc.) or Korean (Samsung, LG, etc.) components, which is still authorized for the moment. On the software side, Kingsoft and Standard Software offer Linux-based alternatives to Windows.
It is especially interesting to see how this decision can upset the future of large Chinese groups. Operating system, semiconductors… the upheaval could be very important and impact the whole world.
However, all is not lost for foreign groups… For at least ten years, China has encouraged the use of locally manufactured computer products. In response, US IT giants, such as HP and Microsoft, have formed joint ventures with Chinese government-backed companies, in order to still get a share of very large Chinese state orders.
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