China has mandated the removal of US microprocessors from Intel and AMD in government-controlled computers, aiming to replace them with domestically produced alternatives.

The initiative also includes replacing Microsoft Windows and foreign database software with Chinese-developed operating systems and databases.

These actions are part of a broader effort by China to develop and utilize local technology amid increasing tensions with the United States.

Chinese government agencies are now instructed to favor 'safe and reliable' technology products, particularly those manufactured by Chinese firms.

The policy is expected to significantly benefit local companies, such as chip-maker SMIC, by increasing their revenues.

While Intel and Microsoft stocks have declined, AMD's stock experienced a minor uptick following the announcement of the new guidelines.

The shift underscores China's commitment to achieving technological independence and self-reliance.