Chinese state regulator surveys reliance on US network switches ahead of potential directives to adopt domestic alternatives.
Chinese authorities are reviewing the deployment of Broadcom hardware within state-backed data centres as Beijing steps up efforts to eliminate reliance on foreign artificial intelligence infrastructure and bolster domestic technology producers.
The State-owned Assets Supervision and Administration Commission (SASAC), the agency overseeing China’s state-owned enterprises, has conducted a comprehensive survey over recent weeks to evaluate the prevalence of Broadcom networking hardware across state-controlled facilities. Preliminary findings from the review indicate that Broadcom switches currently account for up to 90 per cent of the equipment deployed in these data centres.
Following the initial assessment, SASAC is considering issuing informal directives to state-run operators to systematically reduce their reliance on Broadcom equipment. The initiative forms part of Beijing’s broader “domestic chips for domestic use” strategy, which aims to accelerate the public sector adoption of Chinese-manufactured semiconductors and hardware while channelling support towards specialized domestic technology firms, often designated as “little giants.”
While products from Nvidia have already been restricted from state-backed data centres under previous security directives, Broadcom has maintained a dominant market presence alongside local players such as Huawei. The potential restrictions represent a further escalation in China’s push for supply-chain resilience and technological self-sufficiency amidst ongoing trade and technological tensions with the United States.
