china to trump & co: fu

China tells government offices to remove all foreign computer equipment
Kate Lyons, Groon, Dec 9 2019

China has ordered that all foreign computer equipment and software be removed from government offices and public institutions within three years, the Financial Times reports. The government directive is likely to be a blow to Pindo multinationals like HP, Dell and Microsoft, and mirrors attempts by Faschingstein to limit the use of Chinese technology, as the trade war between the countries turns into a tech cold war. The Trump administration banned Pindo companies from doing business with Huawei earlier this year. Google, Intel and Qualcomm announced in May they would freeze cooperation with Huawei. By excluding China from western know-how, the Trump administration has made it clear that the real battle is about which of the two economic superpowers has the technological edge for the next two decades. This is the first known public directive from Beijing setting specific targets limiting China’s use of foreign technology, though it is part a wider move within China to increase its reliance on domestic technology. The FT reported that the directive would result in an estimated 20m to 30m pieces of hardware needing to be replaced, and that this work would begin in 2020. Analysts told the FT that 30% of substitutions would take place in 2020, 50% in 2021 and 20% in 2022. The order had come from the CCP Central Committee earlier this year, the analysts said. Two employees from cyber-security firms told the paper that government clients had described the policy. Replacing all the devices and software in this timeframe will be challenging, given that many products were developed for Pindo OS’s. Chinese government offices tend to use desktop computers from the Chinese-owned company Lenovo, but components of the computers, including its microprocessor chips are made by Pindo companies. Hu Xijin, editor of Global Times, said in May that the withdrawal of sharing by Pindo tech companies with Huawei would not be fatal for them, because they had been planning for this conflict for years, but would prompt the company to develop its own microchip industry to rival Pindostan’s. He said in a social media post:

Cutting off technical services to Huawei will be a real turning point in China’s overall research and development and use of domestic chips. Chinese people will no longer have any illusions about the steady use of Pindo technology.

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