In retaliation for the US ban on Huawei, China could inflict sanctions on AMD and Intel

The U.S. Department of Commerce has issued a ban on Huawei, preventing cooperation with U.S. technology companies. Since then, the trade war between the US and China has been very intense. The recent move by the Chinese government indicates there will be a retaliation against US technology companies in China.

According to The Financial Times, the Beijing Municipal Government has ordered all government offices to remove and replace foreign technology devices. This move will likely inflict severe punishment on the heads of US companies such as AMD or Intel.

Based on China Securities analysis estimates, the Chinese government will have to replace about 20-30 million hardware devices. The replacement plan will begin next year, with up to 30% of foreign equipment being replaced in 2020, the next 50% in 2021 and the last 20% in 2022.

By the end of this plan, China will no longer depend on foreign technology companies, and use 100% of domestic technology equipment in the Government.

According to the Financial Times analysis, the companies that are most affected by this plan are the major computer and server manufacturers, such as HP or Dell, and processor manufacturers like AMD or Intel.

The Chinese government, meanwhile, will use domestic manufacturers' replacement devices, such as Lenovo's computers. Therefore, Lenovo is likely to grow significantly in sales in the coming years. However, Lenovo computers will not be using Intel or AMD chips, this will be certain difficulties.

Not only hardware, but also foreign companies' software will be removed by the Chinese government. Microsoft may be affected, even if the software giant created a special version of Windows 10 specifically for the Chinese government in 2017. But now, the Chinese government is also planning. plans to replace Windows with a self-developed operating system.

With the current tense situation, it's hard to predict where the US-China trade war will go.

Reference: Gizmodo