Microsoft has an ongoing problem with the Chinese government. Back in May 2014, Windows 8 was banned from all government computers, due to China’s growing suspicion that Microsoft’s operating system was being used to spy on government computers and feed Chinese state secrets to US authorities. Now, China wants to get rid of Windows completely and has a plan proposed by the Chinese Academy of Engineering to replace the operating system with a home-grown system based on Linux.
As of now, the new replacement system doesn’t appear to even exist, but the plan has been approved and the complete transition is expected to be complete by 2020. Obviously, developement must have already begun, since a number of government organizations have been ordered to start the migration from Windows. Chinese banks have already been ordered by the Chinese Banking Regulatory Commission to begin switching to systems developed by local manufacturers. China wants the replacement system to be developed entirely by domestic companies. And, not only the software is to be swapped out with alternative solutions, but servers and chips also.
Microsoft explained that it was very surprised by the decision, but has yet to issue an official statement regarding China’s plan.