According to Ukrinform, the Financial Times reported this.

The stricter rules are aimed at abandoning microprocessors from American companies Intel and AMD, as well as moving away from the Microsoft Windows operating system and foreign-made software for database management.

The recommendations apply to computers and servers used in ministries, government departments, and organizations up to the city level in China, as well as state-owned enterprises and the CCP’s central and regional Party structures.

The latest changes to procurement rules mirror China’s move to create domestic substitutes for foreign technology and similar U.S. moves to limit China’s access to the U.S. IT sector and encourage more product purchases from domestic U.S. companies.

The publication notes that the new instructions were announced by the Chinese government at the end of December last year and include requirements for priority assessment when purchasing the security and reliability of processors and operating systems (OS).

At the same time, China’s State Information Technology Security Evaluation Center published a list of secure processors and operating systems that included products from 18 private Chinese companies blacklisted by China, including chips from Huawei and the state-backed Phytium group. USA for export.

It is difficult for Intel and AMD to get on the list approved by the Chinese regulator because they need to provide a full suite of documentation and R&D code for their products, as well as demonstrate a high level of localization, to gain approval. Their products are designed, developed and manufactured in China.

The procurement overhaul is part of Beijing’s national strategy for technological independence in the military, government and public sectors, known as Xinchuan, or “IT applications innovation.”

The Chinese government’s move away from foreign hardware and operating systems will affect American companies in China, starting with the world’s leading PC processor manufacturers Intel and AMD.

China was Intel’s largest market last year, accounting for 27% of Intel’s $54 billion in sales and 15% of AMD’s $23 billion in sales.

Microsoft does not disclose sales in China, but President Brad Smith told the US Congress last year that China accounts for 1.5% of the company’s revenue.

Analysts at China-based Zheshang Securities estimate that the country needs to invest at least 660 billion yuan ($91 billion) in 2023-2027 to replace IT infrastructure in the government, party bodies and eight major sectors.

According to Ukrinform’s report, the price of the new Nvidia chip with artificial intelligence (AI) that can perform some tasks 30 times faster will be between 30,000 and 40,000 dollars.