China retaliates against US tech sanctions, bans use of Intel and AMD CPUs, GPUs in government computers

China has unveiled guidelines aimed at phasing out U.S. microprocessors from government personal computers and servers, as reported by the Financial Times on Sunday. The directive also aims to sideline Microsoft's Windows operating system and foreign-made database software in favour of domestic alternatives.

According to the report, government agencies above the township level have been instructed to prioritize "safe and reliable" processors and operating systems in their procurement processes.

China's industry ministry issued a statement in late December listing CPUs, operating systems, and centralized databases deemed "safe and reliable" for a three-year period, all sourced from Chinese companies, Reuters checks confirmed.

The State Council Information Office, responsible for media queries for China's cabinet, did not immediately respond to requests for comment. Neither did Intel nor AMD immediately respond to Reuters' requests for comment.

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This move comes amidst efforts by the US to boost domestic semiconductor production and reduce reliance on China and Taiwan, as outlined in the Biden administration's 2022 CHIPS and Science Act. The act aims to bolster US semiconductors and offers financial aid for domestic production, including subsidies for the manufacturing of advanced chips.