Ban details

The party recommends using “safe and reliable” domestic solutions instead of banned products. But if in terms of software the country is not inferior to its Western counterparts, in terms of hardware it is clearly not equal.

The replacement list includes 18 approved processors, including Huawei and state-owned Phytium chips, both of which are under US sanctions.

The new rules were introduced in December but have been implemented gradually. According to experts, they can make a significant impact on Intel and AMD. According to FT’s news; China accounted for 27% of Intel’s $54 billion in sales last year and 15% of AMD’s $23 billion in revenue. However, it is not clear how many chips are used in the public and private sectors. The ban currently only applies to the public sector.

These are China’s most aggressive steps to limit the use of American technology. Last year, Beijing banned domestic companies from using Micron chips in critical infrastructure facilities. Meanwhile, the US has banned numerous Chinese companies, from chipmakers to aerospace firms. The Biden administration has also banned US companies like NVIDIA from selling AI chips to China, but China is constantly looking for ways to get around these sanctions.

The US, Taiwan, Japan and the Netherlands dominate the production of high-end processors and recently agreed to tighten export controls on lithography machines from ASL, Nikon and Tokyo Electron. But Chinese companies such as Baidu, Huawei, Xiaomi and Oppo have already started developing their own semiconductors to prepare for the future.They will no longer be able to import chips from the USA and other countries.