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China drops US tech products to boost domestic firms

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CHINA: China has dropped giant U.S. companies such as Cisco, Apple, McAfee and Citrix from its official list of approved products for government purchasing, according to Reuters and BBC news agency.

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Drop means that all the above mentioned companies’ products are no longer on approved list used by government department for its offices, data center and official staff.

Government of China is now focusing on the domestic tech companies and the approved list now recommends domestic manufactured alternatives including Huawei and ZTE.

Among the rejected U.S tech companies, Cisco is one of the biggest losers as in 2010, it had about 60 separate products on the Central Government Procurement Centre’s list. Now, it has none.

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Analysis by Reuter and BBC suggest that the number of foreign firms on the list as a whole has dropped by about a third. Companies making security related and antivirus related hardware and software seem to have fared the worst.

Tu Xinquan, associate director of the China Institute of World Trade Organization Studies, at Beijing’s University of International Business and Economics told, “The Snowden incident, it’s become a real concern, especially for top leaders.” He added, “In addition, by favoring domestic firms, China could be seeking to boost the prospects of its tech sector.”

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