China plans to boot foreign technology from government offices in the next three years amid an ongoing trade war with the US, according to a new report.
The policy — which reportedly affects both hardware and software — could strike a big blow to American tech companies such as Microsoft, HP and Dell.
The directive from the Chinese Communist Party’s Central Office will force the replacement of 20 to 30 million pieces of equipment, the Financial Times reported Sunday, citing an analysis from the brokerage China Securities.
The order is known as the “3-5-2” policy because 30 percent of the affected devices would be replaced next year, 50 percent would be swapped out in 2021 and 20 percent would go the year after, according to the report.
The Central Office’s policy documents are confidential, but workers at two cybersecurity firms told the Financial Times that their government clients have described the scheme.
News of the directive comes after the Trump administration moved in May to restrict US companies from doing business with the Chinese telecom giant Huawei. The Federal Communications Commission also voted last month to mark Huawei and ZTE, a Chinese telecom manufacturer, as national security risks.
The report comes a week ahead of the Dec. 15 deadline for a new round of US tariffs on about $156 billion worth of Chinese-made goods, including smartphones and laptops.
American tech firms have a big stake in the ongoing trade fight, as they reportedly generate as much as $150 billion in revenue from China each year, according to one estimate.
Neither China Securities nor the Chinese State Council immediately responded to The Post’s emails seeking comment Monday morning. HP, Dell and Microsoft also did not immediately respond to requests for comment.
With Post Wires