Most PC makers will miss the government deadline to put internet filtering software on all new machines by tomorrow, according to the Financial Times.
According to PC makers, it will take several weeks or even months to comply if China goes ahead with the controversial order in the face of international criticism.
The FT report quotes US industry analysts as saying the inevitable delay could provide an opportunity for Chinese authorities to find a face-saving compromise.
In May, Chinese authorities ordered PC makers to pre-install or bundle the controversial Green Dam/Youth Escort software on all PCs sold in China from 1 July.
The Chinese government said the software is aimed at protecting China's youth from pornography, but the move has raised concerns that authorities could be trying to increase internet censorship.
The order has also raised concerns that the software could make computers more vulnerable to cyber attacks.
According to security expert, Bruce Schneier, the filtering software is like a built-in botnet on every computer in China, which could potentially be exploited by cybercriminals.