The WSJ reports that China is on an extensive push to drive out Western tech companies from the country and replace them with domestic alternatives. China reportedly started its domestic expansion in 2022 with a highly secretive “Document 79,” an initiative focused on deleting Western tech companies from the country. Since then, China’s new plan has been in full effect — domestic alternatives have replaced most Western software providers.
When initiated two years ago, Document 79 was a super sensitive document that only high-ranking officials were purportedly shown. Security was so paramount that copies of the document were not allowed to be made. The initiative set out by Document 79 is to replace foreign software in China’s IT systems by 2027, with state-owned firms required to provide quarterly updates on their progress in replacing foreign software with domestic alternatives.
Two years later, the fruits of Document 79 are now apparent. Microsoft, HP Enterprise, and Cisco’s market share in China has fallen drastically in the past several years. In 2018, HP Enterprise had a 14.1% market share in China, but in 2023, that has fallen to just 4%. Cisco’s market share has halved in the past five years down to just 8%. Microsoft’s Chinese sales today account for just 1.5% of the company’s overall sales.
Hopefully this means that western companies won’t keep kowtowing to their demands since they won’t be sucking on that sweet revenue teat anymore.
It’s also very good news to america’s middle class, but bad news to america’s investor class. And overall bad for america’s economic dominance relative to other nations.
I don’t really care, nor do many. The hollowed out middle class would just like it if we built shit here, even if the factories were automated. Shit products coming from a shit country, at the behest of our shit business leaders and shit politicians. America’s hegemony has been over for quite some time. We’re just a paper tiger anymore with a leftover military from a bygone era. We have more aircraft carriers than the rest of the world combined, and no will to do anything constructive with the defense budget.
We’re just a paper tiger anymore with a leftover military from a bygone era.
Not entirely true. America is still the most powerful nation-state globally. Although I do think that the era of aircraft carrier fleets is probably obsolete just like the era of battleships was made obsolete right before WW2.
Doubt. You can have biz systems compatible with Western and allied economies, or systems compatible with China and its vassal states, russia & NK. Choose one.
You can have biz systems compatible with Western and allied economies
Did you remember the controversy over
ASMEASML from the Netherlands not wanting to give in to US pressure to stop selling China their machines? Or Germany not wanting to support allied efforts to sanction Russia, because it would be a massive loss to their economy?China and its vassal states, russia & NK.
Lots of african nations will disagree with you, they’re quite happy to lend their support to Africa and Russia, as they benefit from both.
ASML
Thank you, i will edit my comment.
Funny how it’s “allied economies” for the US and “vassal states” for China.
It’s like it’s “expats” when UK citizens enter your country and “immigrants” if anyone else does
I don’t understand how this is news to anyone. China is playing a long con game ever since the modern world order had settled. They instrumentalize capitalism against the west, keeping their corporations tightly aligned with the government and its objectives.
The first step was to appropriate the western technological advantage by providing cheap labor, but always in a partnership construct which allows them access to the actual know-how. This works/worked out perfectly for them, knowing the uncontrolled, solely motivated by greed, western corporations would be unable to resist the short term gains.
The next step was to create western economic dependence on the now largely outsourced manufacturing, giving them increasing leverage to buy into strategic assets all around the world, particularly in former third world regions.
Obviously the next step is to throw out the westerners now that they served their purpose and their economies depend on China. This allows them to build upon the acquired technological know-how and the secured assets, giving them eventual technological dominance over the rest of the world.
With the United States slowly collapsing in on itself the only hope left for the west is for Europe to get their shit together and truly integrate into an actual global player.
And here I was worried about them achieving technological dominance. Looks like they’re setting themselves up for a dark age.
I really don’t believe that. They already have all the knowledge and information they need. Now they are just preventing any spying or backdoors from western companies while western countries are still depended from chinese companies.
I only see this a calculated and strategic move where I’m not sure about the motive or end goal and I’m not sure if I even want to know. China doesn’t make as stupid choices as russia
LMAO. China is not far enough along to outpace the rest of the world. Closing markets off will stifle innovation.
Yeah it’s not like they can just buy western tech and see how it’s made :D they are quite good at spying and reverse engineering western products
Who would “they” be in this context? Only government agents? The “they” who currently steal from the west are all entrepreneurs and investors, private companies and citizens working within an open market.
I suppose if they send their agents abroad to steal technology and then transmit designs back home it could work.
