China further restricts usage of foreign software

China is about to issue rules about the extent to which government departments must favour local software, according to a report by The Financial Times.

The draft policy details issued this month imply that government procurement departments will need to make a distinction between "domestic", "non-domestic" and "preferred non-domestic" software, said the FT. For software vendors to be defined as domestic they must prove that at least 50 per cent of its development cost was spent in China, while for software services at least 70 percent of the costs must be based in China, said the FT.

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