Microsoft Faces Fresh China Headwind As Beijing Reportedly Accelerates Windows Exit From Govt Systems

Microsoft Faces Fresh China Headwind As Beijing Reportedly Accelerates Windows Exit From Govt Systems

By Yuvraj Malik
Publication Date: 2026-08-18 08:08:00

  • China is accelerating plans to replace Microsoft’s customized Windows 10 in state-linked entities over data-security concerns, according to Bloomberg.

  • Microsoft and a Chinese state-owned tech group had developed the Windows version to meet Beijing’s security requirements.

  • The move comes as Microsoft continues to sell AI and cloud services to major Chinese firms, including ByteDance.

China is accelerating efforts to reduce its reliance on U.S. technology, with state-linked entities being told to uninstall a customized version of Microsoft Corp.’s Windows 10, according to Bloomberg.

The Ministry of State Security recently instructed some government-affiliated organizations to remove the software from their computers, the news agency reported on Tuesday, citing people familiar with the matter.

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