BEIJING: China has stepped up spending to replace Western-made technology with domestic alternatives as Washington tightens curbs on high-tech exports to its rival, according to government tenders, research
Servers are seen inside Huawei's factory campus in Dongguan, Guangdong Province, China on Mar 25, 2019. Reuters is reporting for the first time details of tenders from the government, military and state-linked entities, which show an acceleration in domestic substitution since last year.
While the database represents only a fraction of tender bids nationwide, it is the largest collection of state tenders publicly available and mirrors third-party data. China spent 1.4 trillion yuan replacing foreign hardware and software in 2022, marking a year-on-year increase of 16.2 per cent, according to IT research firm First New Voice.
Domestic replacement projects this year have targeted markedly sensitive infrastructure, the tenders show. One March research paper highlighted the dependence of China's UnionPay credit card system on US software firm BMC for settlements. China Tobacco, for example, in July began switching some subsidiaries from Microsoft Windows to Huawei's EulerOS, according to an employee of a software vendor that services the state-owned manufacturer.
AmCham Shanghai President Eric Zheng acknowledged China's national security concerns but said he hoped"normal procurement procedures will not be politicised so that US companies can compete fairly and pursue commercial opportunities ... to benefit both countries". One of the people said privately-held Huawei was seen as more nimble than state-owned groups in rolling out products and executing projects.
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