China’s decision to block the use of Intel and AMD CPUs in its government computers, as well as attempts to reduce dependency on the Windows OS, point to changes in strategic technological politics. The decree was put into operation on December 26 and makes it mandatory for government agencies at the township level and above to acquire “safe and dependable” CPUs and operating systems, giving preference to those manufactured by Chinese companies.
The program is being spearheaded by the country’s finance ministry and Ministry of Industry and Information Technology (MIIT), with an objective to encourage local innovation in technology, hence reducing reliance on US-manufactured goods. Among the Intel CPUs approved for sale by Beijing are those of Huawei and Phytium, which Washington blacklisted for exporting. These “safe” CPUs integrate Arm, Intel’s x86, along with a special set of proprietary instructions, whereas the certified operating systems that can be used with them are built on Linux.
Considering that China accounted for 15% of AMD’s sales last year and 27% of Intel’s, the choice might have a big effect on both companies. Microsoft, on the other hand, is less impacted because China accounts for just 1.5% of its sales.
It seems unlikely that AMD or Intel CPUs will be permitted for use in China going ahead because of the new regulations, which demand that businesses submit their complete code base and documentation for review. China-made CPUs are given priority in these evaluations based on specific criteria.
This change in legislation demonstrates China’s desire to support its own technological sector and lessen its dependency on outside vendors. These actions are probably going to have a big impact on the global tech scene as China develops its IT industry.
