China has ordered authorities and state-owned companies to get rid of foreign computers

According to sources familiar with the plan, employees were asked to exchange foreign computers for home devices using operating software developed in China, writes Bloomberg. According to sources, the plan is likely to lead to the replacement of at least 50 million personal computers at the central government level alone.

The regulation is part of Beijing’s long-standing campaign to replace imported technologies with domestic alternatives. China is trying to reduce its dependence on geopolitical rivals such as the United States, for example in the field of semiconductors, computer servers and telephones.

The plan is likely to have a direct impact on sales of US computer manufacturers HP and Dell. These are the largest brands in the Chinese computer market behind Lenovo’s domestic competitor, writes Bloomberg.

“Lenovo could dramatically increase sales thanks to the Beijing order,” said Nathan Naidu analyst at Bloomberg Intelligence. “Although China’s largest manufacturer uses American chips, it has set up its own chip division and invested in at least 15 semiconductor design companies,” he added.

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