China moves to drastic measures to dispense with US technologies

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China moves to drastic measures to dispense with US technologies

As reported by the Financial Times, the Chinese government is preparing to replace all of its computer equipment to no longer be dependent on foreign equipment. One way to guarantee the sovereignty of its networks and to protect itself more effectively against possible cyber-threats orchestrated by state actors. This transition will have to take place in just three years (20% in 2020, 50% in 2021 and 20% in 2022) and integrates highly political issues.

Consequences for American companies

US technology companies such as Dell, Intel, Hewlett Packard or Microsoft will be the first impacted. For them, China is a market that represents between 20 and 30 million pieces or devices and it is therefore a huge shortfall. On the Chinese side, it's probably a way of responding to the blockade put in place against Huawei and a protectionist approach to favoring Chinese technologies. According to China Securities, this directive comes directly from the Central Bureau of the Communist Party.

Meanwhile, the conflict between China and the United States does not seem to improve, on the contrary. The US government also plans to control the sale of technology on its territory byforeign opponentsThe reason given is the same as for Huawei, namely to guarantee national security.

Source: Financial Times

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