According to Bloomberg, China intends to stop the use of computers and operating systems of foreign companies in state institutions and state enterprises within two years. It is expected that the initiative will require the replacement of at least 50 million foreign-brand computers, which are ordered to be replaced with equipment from Chinese manufacturers.
According to preliminary data, the prescription will not apply to components that are difficult to replace, such as processors. Despite the development of China’s own chips , most Chinese manufacturers continue to use Intel and AMD processors in PCs. Microsoft software is recommended to be replaced with Linux-based solutions developed by Chinese manufacturers.
After the information about the initiative of the Chinese government, the shares of HP and Dell, which occupy a significant share of the Chinese market, fell by about 2.5%. While shares of Chinese manufacturers such as Lenovo, Inspur, Kingsoft and Standard Software, on the contrary, rose in price.