Wide use of overseas software by governments, military and crucial industries such as energy raised concerns about information security for China's government.

"The issue of security of foreign software products is not an unnecessarily self-inflicted one," said Liu Yufeng, executive deputy general manager of Guangzhou-based ZWCAD Software Co, which develops computer-aided design and manufacturing products.

Software "may pose risks to the government, national defense, the military industry and other businesses," Liu said.

High security requirements from the government also pose challenges to international vendors having to keep up with government compliance policies, according to Peng from Canalys.

Industry regulators have cheered on made-in-China systems for years. The latest public support came from Ministry of Industry and Information Technology spokesman Zhang Feng. He said this month the ministry will put "increasing focus" in helping Chinese companies develop Linux-based OS in a bid to lower safety risks.

A big question remains. The industry worries local providers may not be ready to take over the multi-billion-yuan market from overseas giants.

Insiders said it will be next to impossible for government agencies and State-owned enterprises to fully abandon software and systems made by overseas firms.

Li Wenfang in Guangzhou contributed to this story.