December 10, 2019
In a move from President Xi Jinping, Chinese government offices have been ordered to only use Chinese IT products and to remove any foreign computer equipment.
The Financial Times reported that China’s President Xi Jinping has ordered all government offices and agencies to remove all foreign software and IT equipment within the next three years. According to the article this new government directive is most likely to hurt companies like HP, Dell and Microsoft.
Chinese companies that are likely to benefit from this directive include Lenovo for PC’s, laptops and servers and Ninestar Corporation for printers and consumables.
The US started a similar directive as part of the US-China trade war whereby it is limiting the use of Chinese technology in government offices.
Beijing in this counter move is looking to replace 20 to 30 million pieces of hardware, starting in 2020, according to the Financial Times. The article goes on to say that Analysts told the Financial Times the purchase will be split into 30% will be replaced in 2020, 50% in 2021 and the last 20% in 2022.
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