China has taken significant steps to eliminate American technologies in key areas, following a secretive order referred to as “Document 79”, which imposes restrictions on the use of software from the United States.
As reported by The Wall Street Journal, the order issued in September 2022 mandates state companies in financial, energy, and other sectors to replace foreign software in their information systems by 2027.
Referred to as “Delete a”, Document 79 remains highly confidential, with senior officials and managers only permitted to personally acquaint themselves with it without the ability to make copies.
This move is part of Chinese leader Xi Jinping’s broader efforts to decrease reliance on foreign suppliers for economic and national security.
This action comes amidst escalating tensions between Beijing and Washington in trade and technology, following sanctions imposed by the United States on Chinese tech firms and severe restrictions on advanced semiconductor exports.
China has previously taken measures to restrict American equipment, including servers and network technologies from companies like Dell, IBM, and Cisco. The new order targeting the removal of American software could significantly impact tech giants like Microsoft and Oracle, which have benefited from Chinese business during its rapid economic growth.
The directive was issued by the Commission on the Supervision and Management of State Assets of China, overseeing state-owned companies. The country aims to promote the use of domestic technologies as part of a national strategy known as “Xinchuang”, meaning “IT innovation”.
Last month, Chinese regulators emphasized that enterprises under Central Government ownership should play a greater role in advancing artificial intelligence development in China.
The special conference highlighted the need for these enterprises to implement AI-related reforms, develop next-generation technologies, and expedite the establishment of smart computing centers.
Therefore, external deterrents often accelerate import substitution processes and drive the mobilization of domestic resources to foster the creation of advanced domestic technologies in various sectors. China appears poised to effectively compete against the United States and elevate its technological industry to new heights.