China has begun following new guidelines to phase out Windows from govt PCs and servers

China has started implementing new government guidelines to replace foreign technology with domestically produced alternatives across key sectors.

The rules, issued jointly by China’s finance ministry and industry regulator in December 2022, require government agencies and party organs to prioritize “safe and reliable” processors, operating systems, and database software from Chinese providers when making IT purchases.

An initial list approved 18 processor models from companies like Huawei and Phytium, as well as locally-developed operating systems based on Linux. Products must meet criteria focused on domestic design, development, and production capabilities.

The guidelines form part of a national strategy called “xinchuang” to boost technological self-reliance in areas like government, military and state-owned enterprises. State firms have been instructed to transition to domestic IT solutions by 2027.

We are replacing old computers that have foreign chips. After this purchase, basically everyone in the office will have a domestic computer. The old computers we have left with Windows systems can still be used under certain situations.

Said Lao Zhangcheng, in charge of purchasing 16 fully Chinese computers for an organization under the Shaoxing city transport bureau.

Officials have already begun following the new procurement rules this year after they were unveiled with little fanfare last December. While limited purchases of foreign tech like Intel processors and Microsoft Windows may still be allowed temporarily, the guidelines mark a significant push by Beijing to reduce reliance on American technology amid heightened U.S.-China tensions.

Analysts see the rules as potentially impacting major U.S. firms like Intel, AMD, and Microsoft, which have sizeable sales exposures to the Chinese market. Officials have cited the need to improve cybersecurity and reduce supply chain risks as key drivers behind technology localization efforts, which some projects could require an investment of $91 billion through 2027.

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