China blocks use of US chips in state computers
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The news: China has introduced new guidelines blocking the use of Intel and AMD microprocessors in its government computers, as it increases efforts to replace its use of foreign technology with locally made solutions.
The numbers: China was Intel’s largest market last year, providing 27% of its $54 billion in sales and 15% of AMD’s $23 billion in sales.
The context: According to a report by the Financial Times, Beijing’s strict new procurement guidance also aims to block the use of Microsoft’s Windows and internationally made database software. The rules were unveiled in December last year, with officials now putting them into practice.
The guidelines order government agencies above the township level to include criteria that require “safe and reliable” processors and operating systems when making purchases, according to the newspaper.
Beijing has also published a list of processors which it deems “safe and reliable,” that include only Chinese companies such as Huawei and Phytium.
Both companies are already included on Washington’s export ‘blacklist,’ and just last week reports emerged that the Biden administration is considering extending the sanctions to firms associated with Huawei.
The US has been working to improve domestic semiconductor output while reducing its reliance on Chinese products, through the Biden administration’s 2022 CHIPS and Science Act.
The sources: Financial Times, Capital Brief
