China is aiming to purge most foreign technology from banks,
the military, state-owned enterprises and key government agencies by
2020, stepping up efforts to shift to Chinese suppliers, according to
people familiar with the effort.
The push comes after a test of
domestic alternatives in the northeastern city of Siping that was deemed
a success, said the people, who asked not to be named because the
details aren’t public. Workers there replaced Microsoft Corp.’s (MSFT:US)
Windows with a homegrown operating system called NeoKylin and swapped
foreign servers for ones made by China’s Inspur Group Ltd., they said. The plan for changes in four segments of the economy is driven by national security concerns and marks an increasingly determined move away from foreign suppliers under President Xi Jinping, the people said. The campaign could have lasting consequences for U.S. companies including Cisco Systems Inc. (CSCO:US), International Business Machines Corp. (IBM:US), Intel Corp. (INTC:US) and Hewlett-Packard Co.
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