China orders state offices to replace foreign PCs and software

epa04587751 People use computers in an internet cafe in Beijing, China, 27 January 2015. China internet officials on 27 January 2015 defended its efforts to block virtual private networks (VPN), which are used to get around the country's strict internet controls. VPNs encrypt and reroute internet traffic past the national firewall to access more than 2,700 blocked websites including Gmail, Facebook and Youtube, websites of several human rights organizations, as well as some media including the New York Times and financial news agency Bloomberg. EPA/HOW HWEE YOUNG

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Beijing has ordered all government offices and public institutions to remove foreign computer equipment and software within three years, in a potential blow to the likes of HP, Dell and Microsoft.

The directive is the first publicly known instruction with specific targets given to Chinese buyers to switch to domestic technology vendors, and echoes efforts by the Trump administration to curb the use of Chinese technology in the US and its allies.

The move is part of a broader campaign to increase China’s reliance on home-made technologies and is likely to fuel concerns of “decoupling”, with supply chains between the US and China being severed.

Earlier this year, Washington banned US companies from doing business with Chinese telecoms equipment maker Huawei and is looking at ways to help funnel money to its European rivals.

 

Via Financial Times

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