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China Moves to Ditch US Chips and Software in Government Tech Infrastructure

Mar. 25, 2024.
1 min. read. 6 Interactions

China's bold step to redefine tech independence sparks global debate! China's decision to phase out US chips and software in government systems.

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In a strategic move to bolster its technological sovereignty, China has rolled out comprehensive guidelines aimed at phasing out the usage of US-manufactured microprocessors, particularly those from Intel and AMD, in government computers and servers. The directive, outlined by the Financial Times, extends beyond processors to include Microsoft’s Windows operating system and foreign-made database software, all in favor of domestic alternatives.

Effective immediately, government agencies above the township level are mandated to consider only “safe and reliable” processors and operating systems in their procurement processes, as per the newly unveiled guidelines. Chinese officials have already commenced implementation, aligning purchases with the stipulated criteria.

According to the Financial Times report, China will need to invest $91bn from 2023 to 2027 to replace the IT infrastructure

The move comes amidst escalating tensions in the global semiconductor industry and marks China’s proactive step towards reducing dependency on foreign technology. Notably, China’s Ministry of Industry and Information Technology released a statement late last December, identifying CPUs, operating systems, and centralized databases from domestic companies as “safe and reliable” options for the next three years.

While Intel and AMD have remained tight-lipped, this development underscores the broader geopolitical competition over technological dominance. In response, the US has intensified efforts to bolster domestic semiconductor production, exemplified by the Biden administration’s 2022 CHIPS and Science Act, which aims to strengthen US semiconductor capabilities and reduce reliance on foreign suppliers.

This strategic maneuver by China is poised to have significant ramifications, reshaping the landscape of global technology supply chains and reinforcing the country’s push for self-reliance in critical sectors.

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One thought on “China Moves to Ditch US Chips and Software in Government Tech Infrastructure

  1. War is eminent!

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