[Epoch Times November 17, 2021](Epoch Times reporter Zhang Ting’s comprehensive report) Bloomberg News quoted people familiar with the matter on November 16 as revealing that the CCP is speeding up the implementation of plans to replace American and foreign technology and quietly authorizing a secret government-supported organization To review and approve local suppliers in sensitive areas ranging from cloud to semiconductors, and establish a “white list” so that Beijing has more leverage to replace foreign companies in sensitive areas.
The report pointed out that the “Information Technology Application Innovation Working Committee” (Information Technology Application Innovation Working Committee, referred to as the Xinchuang Working Committee), which provides information to the government, was established in 2016 and has been commissioned by Beijing to help formulate industry standards and train personnel to operate it. Trusted software.
This quasi-government agency will formulate and implement the “Information Technology Application Innovation” plan, referred to as “Xin Chuang”. It will select from a basket of suppliers reviewed under the plan to provide technology for sensitive industries ranging from banking to data centers that store government data. By 2025, the value of this market may reach 125 billion U.S. dollars.
People familiar with the matter said that so far, 1,800 Chinese computer, chip, network and software suppliers have been invited to join the committee. One of the people familiar with the matter said that the committee has certified hundreds of local companies as members so far this year, which is the fastest year in many years.
The report also pointed out that the members and primary targets of Xinchuang’s “white list” have never been reported before. This list gives Beijing more leverage to replace foreign technology companies in sensitive areas, and speeds up helping local leading companies achieve technological self-reliance and overcome US sanctions in areas such as networks and chips.
The report said that promoting the replacement of foreign suppliers is part of a broader effort by the Chinese government to exercise control over its vast technology industry, including data security. The Chinese government has forced overseas cloud computing providers such as Amazon Web Services and Microsoft to establish joint ventures in the mainland to operate. Apple also handed over its user data storage business to a government-backed operator in Guizhou. This control will be further strengthened as the technology industry sector exercises more supervision on industrial and telecommunications data and proposes new rules requiring key data to be stored in China.
There is not much disclosure of details about the “Xinchuang Industrial Committee” or its members. Any company with more than 25% of foreign shares will be excluded from the committee, which makes overseas suppliers such as Intel and Microsoft excluded. . People familiar with the matter said that Chinese technology start-ups funded mainly by foreign investment will also face higher thresholds.
According to the cloud computing company Netis, the “Xinchuang Working Committee” has 1,160 members in July 2020. Well-known companies include Beijing-based CPU manufacturer Godson and server manufacturer Inspur.
The members of the “Xinchuang Working Committee” can provide local suppliers with key advantages, allowing their technology to be approved under the “Xinchuang” plan, thereby opening up a billion-dollar market.
In September, the “Economic Information Daily” owned by Xinhua News Agency listed the 40 best-performing companies under the “Xinchuang” plan, including Huawei, Alibaba’s cloud division, and network security company Qi Anxin Technology Group.
The CCP forces American companies to transfer technology in exchange for access to the Chinese market. This is one of the reasons that triggered a trade war with the CCP during Trump’s (Trump) period.
In July 2020, the then U.S. Attorney General William Barr used Hollywood as an example to condemn American companies for succumbing to the CCP in order to gain access to the Chinese market. Barr warned Hollywood that in the long run, like other American industries, China (the CCP) may not be as interested in cooperating with Hollywood as it wants to borrow Hollywood’s creativity and eventually replace it with its own domestic works.
“In order to achieve this goal, the CCP has been using its usual tactics. By imposing quotas on American films, the CCP has put pressure on Hollywood film companies to form joint ventures with Chinese companies, and the Chinese companies will then acquire American technology and know-how. Just as As a Chinese film executive said recently: “Everything we learn comes from Hollywood.” It is worth noting that in 2019, 8 of China’s 10 most popular films were produced in China. “Barr said.
Editor in charge: Lin Yan#
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