China orders govt offices to remove foreign equipment, software

In the latest salvo to the tech cold war, the Chinese government has ordered all government offices and public institutions to stop using any foreign computer and software equipment, the Financial Times reported, saying all such equipment will have to be removed within three years. The Chinese directive, which could hit companies such as HP, Dell and Microsoft, is the first from Beijing to set specific targets limiting China’s use of foreign technology. 

The report says about 20-30 million pieces of hardware would have to get removed and replaced, from 2020. Analysts told the FT that 30 percent of the replacements would likely take place in 2020, 50 percent in 2021 and 20 percent in 2022. 

The Federal Communications Commission (FCC) last month barred its USD 8.5 billion per year Universal Service Fund (USF) from being used to purchase equipment and services from companies that pose a national security threat. The order specifically designates Huawei and ZTE as the target of this rule. Huawei is planning a lawsuit against the move.