China Ditches Microsoft's Windows 10 for Domestic Rival

Microsoft's Windows 10 CMIT Government Edition has been phased out early in China after a directive from the Ministry of State Security. The system, developed by Microsoft and China Electronics Technology Group Corporation's joint venture CMIT, was originally scheduled to terminate support in February 2027 but will now be discontinued ahead of schedule.

The move is part of China's effort to promote domestic software use by government agencies and state-owned enterprises. Since 2017, the country has been pushing for the procurement of local software, with companies like Kylinsoft and UnionTech launching their own operating systems to replace Windows.

In July, all four winning bid packages for portable computers for central government organs opted for domestic systems instead of Windows, further reducing Microsoft's presence in China. Over the past five years, Microsoft has closed at least 15 branches and joint ventures in China, with some executives considering completely exiting the market due to high geopolitical risks.

However, Microsoft ultimately chose not to exit the Chinese market due to its vast pool of engineering talent and growing demand for Azure cloud services from companies expanding overseas. ByteDance, a major AI customer, is expected to spend over $1 billion annually on Microsoft's services.