Kylin Software, a unit of China Electronics Corp, has launched V11, the latest version of its operating system, at the China Operating System Industry Conference in Beijing.

The new version features AI integration and supports a wider range of Chinese-designed semiconductors.

Kylin’s partners for this release include domestic chipmakers Hygon Information Technology and Loongson Technology, as well as software and computer system vendors like China Greatwall Technology, Unicompute Technology, Kingsoft, and ZWSoftware.

The upgrade is part of China’s ongoing push for greater tech self-sufficiency amid continued tensions with the US.

Despite these efforts, Microsoft Windows remains the dominant operating system in China, holding nearly 81% market share as of July, according to StatCounter.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s tech self-sufficiency ambitions face persistent market reality gaps

Kylin’s V11 launch highlights the ongoing challenge between China’s technological ambitions and market penetration, with Microsoft Windows still commanding an 81% market share in China as of July1.

This reflects broader struggles with China’s “Made in China 2025” initiative, which targeted leadership in ten key industries by 2025 but has faced significant implementation challenges since its 2015 launch2.

The semiconductor sector exemplifies these difficulties. Despite China leading global chipmaking investment projections for 20253, the country’s chip investment actually fell in the first half of 2025 while equipment funding surged over 53%4.

Even with substantial government backing and partnerships with major domestic chip designers like Hygon Information Technology and Loongson Technology, Kylin’s ecosystem still represents a small fraction of the operating system market1.

2️⃣ Self-reliance strategy echoes historical Chinese policy approaches under modern pressures

China’s current push for technological independence through initiatives like Kylin V11 reflects a strategic return to self-reliance concepts rooted in Mao Zedong’s era, now revived under Xi Jinping’s leadership5.

This continuity demonstrates how external pressures, particularly U.S. trade tensions and technology restrictions, have catalyzed renewed focus on domestic production capabilities across technology and manufacturing sectors5.

The timing of Kylin’s AI-integrated upgrade aligns with this broader narrative of achieving technological sovereignty, positioning domestic alternatives as responses to potential foreign technology access limitations.