That article is poorly written. This one is more informative. Since there’s a paywall, I’ll quote a few relevant parts:
"China has introduced new guidelines that will mean US microprocessors from Intel and AMD are phased out of government PCs and servers, as Beijing ramps up a campaign to replace foreign technology with homegrown solutions.
The stricter government procurement guidance also seeks to sideline Microsoft’s Windows operating system and foreign-made database software in favour of domestic options."
…
"Officials have begun following the new PC, laptop and server guidelines this year, after they were unveiled with little fanfare by the finance ministry and the Ministry of Industry and Information Technology (MIIT) on December 26. They order government agencies and party organs above the township level to include criteria requiring “safe and reliable” processors and operating systems when making purchases. "
No, it’s only a bad idea if nothing else is allowed.