TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Unlawful Eskom strike costing South Africa three stages of load shedding

      1 July 2022

      Striking Eskom workers will face consequences: De Ruyter

      1 July 2022

      The AI tool that has changed my life as a developer

      1 July 2022

      Google.co.za is down and the domain is pending deletion

      1 July 2022

      US files charges over South African bitcoin fraud scheme

      1 July 2022
    • World

      Meta girds for ‘fierce’ headwinds

      1 July 2022

      Graphics card prices plummet as crypto demand dries up

      30 June 2022

      Bitcoin just had its worst quarter in a decade

      30 June 2022

      Samsung beats TSMC to 3nm chip production

      30 June 2022

      Napster plots crypto comeback

      29 June 2022
    • In-depth

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022

      Everything Apple announced at WWDC – in less than 500 words

      7 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»World»China orders foreign tech removed from government offices

    China orders foreign tech removed from government offices

    World By Agency Staff9 December 2019
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    The Chinese government is taking further steps to remove foreign technology from state agencies and other organisations, a clear sign of determination for more independence amid escalating tensions with the US.

    Beijing will likely replace as many as 20 million computers at government agencies with domestic products over the next three years, according to research from China Securities. More than 100 trial projects for domestic products were completed in July, the brokerage firm said. The Financial Times said the Communist Party’s Central Office earlier this year ordered state offices and public institutions to shift away from foreign hardware and software.

    The government under President Xi Jinping has been trying for years to replace technologies from abroad, and particularly from the US. Bloomberg News reported in 2014 that Beijing was aiming to purge most foreign technology from its banks, the military, government agencies and state-owned enterprises by 2020. The country’s Made in China 2025 plan also set out specific goals for technology independence, although the policy has been de-emphasised after contributing to trade war tensions.

    The trade war has exposed various areas of Chinese economic weakness, which Beijing seems determined to rectify

    US President Donald Trump’s aggressive policies against China and its leading companies have given the effort renewed urgency. His administration banned US companies from doing business with Huawei Technologies this year and blacklisted other Chinese firms.

    “The trade war has exposed various areas of Chinese economic weakness, which Beijing seems determined to rectify,” said Brock Silvers, MD of Adamas Asset Management. “If the decision pushes Trump to finally come down hard with a more forceful ban of Chinese tech, however, China may one day regret having gone so public with its policy so soon.”

    While the current push is narrow in scope, it is designed as part of the broad, long-standing effort to decrease China’s reliance on foreign technologies and boost its domestic industry. The goal is to substitute 30% of hardware in state agencies next year, 50% in 2021 and 20% in 2022, China Securities estimated, based on government requests and clients’ budgets.

    30 million PCs

    The research, from September, detailed Beijing’s goals. The FT reported the number of computers to be replaced could reach 30 million, attributing the figures to China Securities. The newspaper said the goal is to use “secure and controllable” technology as part of the country’s Cyber Security Law passed in 2017.

    Starting next year, key industries such as finance, energy and telecommunications will test more domestic products in trials that may last years, the firm said. Chinese banks are supposed to shift from IBM and Oracle to more diversified x86 architecture suppliers and then eventually to fully made-in-China hardware. China has decided to adopt ARM architecture for its domestic hardware, China Securities said.

    Not easily replaced

    “The China-US trade war could also help to breed a new market for home-made products,” China Securities analyst Shi Zerui wrote.

    Still, Beijing’s push has proven difficult because its domestic industry hasn’t yet shown itself capable of matching foreign technologies in certain sectors. Particularly hard to replace, for example, are semiconductors from suppliers like Intel and Nvidia, as well as software from Microsoft and Apple.

    “While large suppliers such as Microsoft and IBM are undoubtedly worried, many high-end components, like chipsets, can’t be easily replaced,” Silvers said.  — Reported with assistance from Debby Wu, (c) 2019 Bloomberg LP

    Donald Trump Huawei Intel Microsoft Nvidia Oracle Xi Jinping
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleTelkom CEO skewers CompCom for ‘blunt tool’ of price control
    Next Article We will not allow SOEs to fail, by Cyril Ramaphosa

    Related Posts

    The AI tool that has changed my life as a developer

    1 July 2022

    Meta girds for ‘fierce’ headwinds

    1 July 2022

    Graphics card prices plummet as crypto demand dries up

    30 June 2022
    Add A Comment

    Comments are closed.

    Promoted

    Billetterie simplifies interactions between law firms and clients

    30 June 2022

    Think herding cats is tricky? Try herding a cloud

    29 June 2022

    How your business can help hybrid workers effectively

    28 June 2022
    Opinion

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    A proposed solution to crypto’s stablecoin problem

    19 May 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.