Title: China Increases Efforts to Replace American Technology with Local Alternatives
Date: March 8, 2024
The Communist Party of China (CCP) has ramped up its efforts to replace American technology with local alternatives, according to a recent report. Document No. 79, titled “Eliminate A” or “clearing American technology,” highlights the CCP’s intensifying push to replace foreign software with Chinese options in key sectors like finance and energy.
General Secretary Xi Jinping has personally overseen equipment upgrades and the replacement of old consumer goods with new ones in a bid to stimulate domestic demand. Despite efforts by Premier Li Qiang to lure American companies to invest in China, Xi Jinping has taken actions to attract investment, including hosting a lavish dinner for business leaders in San Francisco.
The CCP has been secretly planning for “decoupling” from Western countries, as revealed in a report by the Wall Street Journal. State-owned enterprises have been instructed to replace foreign software in their IT systems by 2027, amid tightening chip export restrictions and sanctions on Chinese technology companies by the United States.
Foreign high-tech companies are feeling the impact of these measures, with companies like Microsoft, Oracle, Dell, and Hewlett Packard Enterprise seeing significant declines in their market share in China. Software has been one of the last profit points for foreign tech companies in China, with companies like Adobe, Citrix, and Salesforce scaling back their operations in the country.
China’s increased budget for technology spending and a focus on self-sufficiency in key technologies like semiconductors have further strained relations with Western countries. However, China’s domestic demand remains weak, as indicated by a continuous decline in the manufacturing purchasing managers index (PMI) for five consecutive months.
In an attempt to stimulate domestic demand, Xi Jinping has called for the trade-in of traditional consumer goods like cars and home appliances for new ones. Despite previous stimulus measures by the CCP, the economy continues to face downward pressure.
Observers are skeptical about whether these measures will effectively address China’s deflation problem. Economist Cheng Xiaonong believes that the CCP’s focus on fake demand for new products may not provide a sustainable solution to boost the economy.
As China grapples with economic challenges, maintaining truthful broadcasts to the country is crucial to inject hope and foster positive change. The Voice of Hope invites collaboration to defeat the biggest threat of our time and support efforts to end the CCP’s deceptive practices.