Tuesday, 21 January 2020

China bans government depts from using US tech

By Chris Kelly, Total Telecom
Monday 09 December 19

The ban will see Chinese government and public departments strip out foreign tech and replace it with kit supplied by domestic producers, such as Huawei and ZTE

The Chinese government has banned all government and public institutions from using foreign telecoms and ICT kit, in a major blow to international tech firms…

The Chinese government has banned all government and public institutions from using foreign telecoms and ICT kit, in a major blow to international tech firms.

The move could hit US companies like Microsoft and Dell particularly hard, according to a report in the Financial Times.

The move can be seen as a tit for tat reprisal, following the US' decision to begin removing Chinese kit (mainly that manufactured by Huawei) from its telecoms networks.

The US recently announced that it would bar any telco using Huawei equipment from accessing an $8.5 billion fund intended to boost rural connectivity in the US.

The US government is currently working on legislation to force US carriers to strip out equipment from Chinese suppliers such as Huawei and ZTE.

According to the FT report, China's decision to ban US kit from its public infrastructure will result in between 20 – 30 million pieces of kit needing to be stripped out and refitted. The move will create an enormous opportunity for domestic suppliers such as ZTE and Huawei to capitalise on.

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