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.
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.