China ditches leading tech companies for state purchases
China has replaced leading international tech names with thousands of locally made products on their state approved purchase lists. The reason behind this is thought to be China’s worry about the American and other Western governments’ cyber surveillance revelations. A second reason could also be China’s strife for privacy over their own technology development.
The company most hard hit by this decision has been American network equipment maker Cisco Systems Inc. Smartphone and PC maker Apple Inc has also been dropped from the list, along with Intel Corp’s security software firm McAfee and network and server software firm Citrix Systems.
This pivoting in state technology suppliers is bound to boost the Chinese technology economy, and will help Chinese tech firms get a bigger slice of China’s information and communications technology market, which is tipped to grow 11.4 percent to $465.6 billion in 2015, according to tech research firm IDC (cited from Reuters).
China’s move will hurt Silicon Valley Tech firms who have been struggling since revelations about U.S. government surveillance. However, the danger for China is that if if becomes too dependent on local technology suppliers, they might be surpassed by international players, thus potentially leaving the country’s cyber security vulnerable.