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Business News/ News / World/  China accelerates push for local tech, limits use of US chips, software in government systems

China accelerates push for local tech, limits use of US chips, software in government systems

There appears to be some flexibility for government agencies and state-owned enterprises to continue using computers powered by foreign processors and servers, as indicated by two unnamed procurement officials cited in the report, as per the report.

Software provided by companies like Microsoft Corp. will also be replaced as part of this initiative.

In a move to bolster its domestic technology industry, China is reportedly limiting the use of US-made microprocessors and servers in government computers. According to a report by the Financial Times, new guidelines unveiled by the Chinese finance ministry and the Ministry of Industry and Information Technology (MIIT) in December 2022 aim to replace chips made by American firms such as Intel Corp and Advanced Micro Devices Inc. with local alternatives, according to a report by The Hindustan Times.

Livemint could not independently verify this news development.

The report further suggests that software provided by companies like Microsoft Corp. will also be replaced as part of this initiative. However, there appears to be some flexibility for government agencies and state-owned enterprises to continue using computers powered by foreign processors and servers, as indicated by two unnamed procurement officials cited in the report, as per the report.

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China's push to phase out foreign technology from its most sensitive sectors has been an ongoing effort in recent years. In 2022, Beijing ordered central government agencies and state-backed corporations to replace foreign-branded personal computers with domestic alternatives within a two-year timeframe.

This latest development comes amid escalating tensions between China and the United States over technological dominance, particularly in the semiconductor industry. Bloomberg had previously reported that the US is considering blacklisting a number of Chinese semiconductor firms linked to Huawei Technologies Co., marking another potential escalation in Washington's campaign to curtail Beijing's ambitions in artificial intelligence and semiconductor development, the report added.

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As the global technology landscape becomes increasingly competitive and geopolitically charged, China's move to prioritize local alternatives in its government systems underscores its determination to reduce reliance on foreign technology and strengthen its domestic capabilities, as per the report.

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