China's Ministry of State Security has reportedly directed certain state-linked organizations to uninstall a specialized version of Windows 10 from their systems. This order, cited by Bloomberg, accelerates the software's scheduled retirement, which was initially set for February 2027 by its developer.
Sources familiar with the matter attribute the directive to unspecified data security concerns. The affected software is a government edition developed by C&M Information Technologies (CMIT), a joint venture between Microsoft and state-owned China Electronics Technology Group, with the Chinese side holding a majority stake. This build is based on Windows 10 Enterprise but features modifications like the removal of consumer components, disabled native functions, and localized updates and activation within China, allowing for the substitution of Chinese encryption algorithms.
Following the report, shares of Chinese operating system vendors experienced significant gains. Hunan Kylinsec and Archermind both reached Shanghai's 20% daily trading limit, while China National Software saw a 10% increase. This market reaction suggests a strengthened push towards domestic software solutions within China.
This move aligns with China's broader strategy to reduce reliance on foreign technology. Previous directives include banning Windows 8 from government procurement in 2014 and ordering the replacement of foreign PCs in government offices starting in 2019. The domestic technology stack developed to meet this demand includes operating systems like Kylin V10 and UnionTech's UOS, and hardware such as Huawei's Qingyun desktops running the Kirin 9000X chip.
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China's Ministry of State Security has reportedly instructed some state-linked organizations to remove a customized Windows 10 version, accelerating its planned retirement due to data security concerns. This directive led to a surge in shares for Chinese OS vendors, indicating a push towards domestic software alternatives.