China Speeds Up Phaseout of Custom Microsoft Windows 10 in State Agencies

State authorities in China have instructed select state-linked entities to remove a customized government edition of Microsoft Corp.'s Windows 10 operating system ahead of its original timeline, as reported by The Next Web via Bloomberg. The Ministry of State Security cited data security risks for accelerating the phaseout, though official directives did not publicly detail specific technical vulnerabilities within the software platform.

The updated mandate advances a retirement schedule that had previously set the software's end-of-life date for February 2027. Arriving several weeks ahead of a scheduled summit between U.S. President Donald Trump and Chinese President Xi Jinping, the accelerated timeline unexpectedly caught staff at several affected state institutions off guard.

Microsoft stated that it has found no evidence of security breaches impacting the tailored platform. A company spokesperson told Bloomberg that the software continues to receive standard security updates and that Microsoft remains unaware of any security incidents involving the product. Neither joint venture partner C&M Information Technologies (CMIT) nor China's State Council Information Office responded to requests for comment.

The affected operating system is a specialized build produced by CMIT, a joint entity established in 2016 by Microsoft and state-owned China Electronics Technology Group Corporation. Designed to meet Chinese cybersecurity mandates, the software incorporates domestic security protocols while disabling specific native Windows features. Microsoft previously phased out general support for standard Windows 10 builds in late 2025 following the release of Windows 11.

Market reaction to the instruction led to immediate gains for domestic software providers in China. Shares of Hunan Kylinsec Technology and Archermind Technology both hit their 20% upper daily trading limits, while China National Software & Service gained 10%. Local operating system developers, such as Kylin Software, Tongxin Software Technology, and Hunan Kylinsec, are positioned to capture market share as government entities transition away from foreign software infrastructure.

The move represents the latest step in Beijing's ongoing campaign to phase out foreign computing technology across government offices and sensitive state-controlled industries. Central state bodies have previously received orders to phase out foreign-branded desktop hardware, while sensitive government agencies have restricted the use of Apple Inc. iPhones. Parallel efforts to replace foreign semiconductors have seen domestic telecom operators like China Telecom award major infrastructure contracts to local suppliers, including a $1.7 billion server deal with Huawei for its Kunpeng processors.

Despite the restrictions within government offices, Microsoft retains commercial growth in China's private market. The enterprise software giant continues to supply cloud infrastructure and artificial intelligence services to major Chinese technology firms, with ByteDance on track to spend more than $1 billion annually on Microsoft's AI and cloud offerings. Meanwhile, global desktop metrics cited by TechRadar indicate that Windows 10 remained present on approximately one in six personal computers as of July 2026, with Microsoft providing extended paid security support through October 2027.