China has never set out to oust imported IT hardware in the government procurement sector. But IBM, Hewlett-Packard, Cisco Systems Inc and many other technology giants are feeling the pain from a tightened grip on data security standards and checks. These companies did not immediately comment.
State-owned banks and telecom carriers are the biggest buyers of servers.
Chinese vendors only provide low-and midlevel products, with overseas companies catering to high-end demands.
The plan aims to increase the market share of domestic servers to 75 percent by 2020.
Chen Shanzhi, a member of the committee who was involved in setting the targets, said wider use of locally made IT hardware in key industries will help secure data safety.
"It will be a comprehensive project to keep our data safe. The country will try out more homemade servers, storage, operating systems and other basic software products in coming years."
Chen also said the market share of domestically manufactured basic software products in the finance and telecom sectors would increase to about 75 percent in 10 years. Local software makers have less than 50 percent of the market today.
But Wu Lianfeng, associate vice-president of industry consultancy IDC China, said it is virtually impossible for banks and telecom carriers to solely purchase servers produced by Chinese vendors because of the technology gap.
"A practical way of doing this is to make overseas multinationals join hands with local vendors and produce products that comply with Chinese regulations," Wu said.
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