In a bold move towards technological independence, China is actively phasing out all Western technologies in favor of locally-made alternatives. This transition, slated for completion by 2027, marks a significant shift in the global tech landscape.
According to reports from the Wall Street Journal, this endeavor is outlined in a top-secret initiative known as 'Document 79,' published in 2022. The highly classified document aims to purge all Western technology from China's IT systems.
So clandestine is this initiative that access is restricted to top government officials, and its contents cannot be copied. State-owned enterprises are mandated to provide quarterly updates on their progress in replacing foreign software with domestic alternatives.
Implemented two years ago, the initiative is already yielding results. The market share of Western tech giants such as Microsoft, HP Enterprise, and Cisco in China has plummeted in recent years.
In 2018, HP Enterprise held a commanding 14.1% market share in China, but by 2023, this figure had dwindled to a mere 4%. Meanwhile, Microsoft's sales in China contributed just 1.5% to the company's total revenue.
Most Chinese companies now prefer domestically-made technology, even though foreign products still possess superior capabilities. For instance, Chinese companies that once purchased IBM rack servers have switched to locally-produced servers using Huawei chips.
Chinese tech behemoth WeChat has also jumped on the bandwagon. They've transitioned from hosting and data management solutions offered by Oracle, IBM, and Microsoft to local offerings from Huawei and Alibaba, as reported by Tom's Hardware on Wednesday (March 13, 2024).
Beyond hardware and business solutions, the effects of the Document 79 initiative are also felt in China's software ecosystem. The domestically-developed KylnOS operating system is touted to be on par with Windows 7.
The WSJ report reveals that Chinese companies captured half of China's technology market for the first time in 2022. This upward trend signifies that the majority of China's technology market is now dominated by local products. what's is google-cl
China's ambitious drive to replace Western technologies underscores its determination to achieve self-reliance and assert its technological prowess on the global stage. As the initiative continues to unfold, its implications for the future of the global tech industry remain profound and far-reaching.
