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.
I don’t blame them, considering how relying on American tech companies puts them in a position where America can use it as a way to pressure them… I would have done the same.
Plus Snowden’s revelations showing that the US can use them to spy on people, like they did with AT&T, Microsoft, and other US companies.
True, basically what the US is blaming China of doing. Pretty sure both are doing it, but the hypocrisy is funny.
Big we’re accusing you not because we have evidence but because it’s what we would do vibes.
It’s also a distraction for the public; by blaming China for spying, they can take up headlines which diverts public attention away from other stuff.