The worry of overseas technology companies that the State-owned enterprises may favor local vendors is gradually becoming a reality after a number of US IT firms were subject to monopoly investigations or security criticisms in
China National Petroleum Corp, the largest SOE in the oil industry, said on Friday it has signed an agreement with
It was the first major IT deal signed by a top SOE after US vendors, including
"The CNPC-Huawei strategic procurement deal will guarantee both parties' core interests," CNPC said in a statement.
The SOEs are likely to sign more deals with local IT providers to avoid unexpected regulatory troubles caused by adopting foreign-made products.
"Chief information officers in normal enduser companies will need to update or even redesign the company's security architecture because of the increasing safety concerns," Dai said.
Extra caution over data security has created more barriers for overseas IT providers, he said.
IT products acquired by SOEs are part of a government procurement project in
In May, the State Internet Information Office imposed a cybersecurity review on hardware, software and service providers.
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