Home » China vigorously promotes “elimination” campaign in technology industry – Wall Street Journal

China vigorously promotes “elimination” campaign in technology industry – Wall Street Journal

by admin
China vigorously promotes “elimination” campaign in technology industry – Wall Street Journal

The Chinese government has issued a new directive, known as Document No. 79, which aims to phase out American technology from China by 2027. This move comes as part of China’s push for self-sufficiency and concerns about national security in the long term.

The document requires state-owned enterprises in finance, energy, and other industries to replace foreign software in their IT systems with Chinese alternatives. This directive, named Circular 79, targets both hardware manufacturers and software providers, signaling a significant shift in China’s approach to technology.

Under the leadership of Chinese President Xi Jinping, China has been striving to become self-sufficient in various key technologies, including semiconductors and operating systems. The country is seeking to reduce its dependence on Western technology and focus on developing domestic supply chains.

This move to promote technology localization, known as “Xinchuang,” is seen as a response to escalating tensions with the United States in the tech and trade sectors. Premier Li Qiang recently reiterated this policy at China’s annual National People’s Congress, highlighting the government’s increased spending on science and technology research and development.

As a result of Document No. 79, many U.S. technology giants operating in China, such as IBM and Cisco Systems, are facing challenges as they see their market share eroded by Chinese competitors. In recent years, there has been a gradual shift towards purchasing Chinese technology products in government tenders and state-owned enterprises.

While some Western companies still have opportunities in China, particularly in advanced technology sectors, the overall trend indicates a growing preference for domestic technology solutions. As Chinese companies develop more sophisticated and user-friendly products, the market dynamics in China are expected to favor local suppliers over foreign ones.

See also  What are the special folk customs in various places to welcome the New Year?Come and make up for the lessons - China News Network

The impact of Document No. 79 and China’s broader push for technological self-sufficiency remains to be seen, but it represents a significant shift in the country’s approach to technology and its relationship with foreign companies. With Chinese state-owned enterprises leading the way in adopting domestic technology solutions, the path ahead for U.S. technology companies in China may become increasingly challenging.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy