Explained: China’s new rules for chips in government computers with a US snub

China is limiting the use of US-made microprocessors and servers in government computers, Financial Times reported as the new rules will replace chips made by US firms Intel Corp and Advanced Micro Devices Inc. with local alternatives. The report cited guidelines unveiled by the finance ministry and the Ministry of Industry and Information Technology (MIIT) on December 26 last year.

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What is China changing in government computers?

Software provided by companies including Microsoft Corp. will be replaced, the report noted. Although, there is still some flexibility for government agencies and state-owned enterprises to buy computers powered by foreign processors servers, two unnamed procurement officials told the newspaper. Although Microsoft and Intel declined to comment on the report. AMD has also not responded to a request for comment.

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Why is China pushing out foreign technology?

China has been removing key overseas technology from within its most sensitive organs over the past years as in 2022, Beijing ordered central government agencies and state-backed corporations to replace foreign-branded personal computers with domestic alternatives. The order stated that the change should be made within two years.

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This comes after Bloomberg reported that the US is considering blacklisting a number of Chinese semiconductor firms linked to Huawei Technologies Co. This could mark another escalation in Washington’s campaign to curtail Beijing’s AI and semiconductor ambitions.

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