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China Overhauling Tech to Remove U.S. Hardware

of wall street journal (WSJ) Thursday report The purpose of the Chinese government’s secret directive of 2022, known as “Document 79,” is to “exclude America” ​​from China’s high-tech industry.

Under the directive, Chinese state-owned enterprises (SOEs) are required to phase out foreign software by 2027 at the latest.

of WSJ explained:

U.S. technology giants have long thrived in China by using computers, operating systems and software to connect China’s rapid industrial development. Chinese leaders want to sever the relationship due to concerns about the country’s long-term security and promoting self-sufficiency.

Document 79 is named Poison, but its contents are so explosive that Chinese officials and business executives were ordered to memorize the document without photographing or copying it. . Since 2022, this secret order has been exercised against US tech giants such as Dell, IBM, and Cisco.

The execution of Document 79 is reportedly being overseen by the State-owned Assets Supervision and Administration Commission (SASAC), which did not respond to requests for comment. WSJ. More than half of China’s largest companies are state-owned, with a value of nearly $7 trillion.

The abbreviation for the order among Chinese executives is “Delete A,” which stands for “Delete America,” insiders said. Although Document 79 was top secret, the nickname leaked into the public domain as some Chinese software companies explicitly offer services to help remove the “A” from corporate systems.

That would require these companies to buy Chinese information technology products instead, but many executives are privately unhappy with this solution. Because locally produced software and hardware are not as good as the banned U.S. alternatives.

Some analysts say the forced shift to domestically produced IT products is severely damaging China’s economy. The order also took away 8 to 10 percent of the market share from major U.S. computer companies such as Dell and Hewlett-Packard. Even Microsoft is losing market share in China, despite its efforts to keep its operating system viable there.

Big Chinese technology companies like Huawei are developing products to drive American electronics out of the Chinese market, and some American companies like Oracle are developing products to force Chinese companies specifically to replace them. discovered that it was established. Analysts say it will become increasingly difficult for U.S. companies to regain lost market share as they distance themselves from Chinese consumers and are unable to obtain feedback from and meet their needs like domestic companies. He said it would happen.

of WSJ This report provides an interesting contrast to President Joe Biden. boast In Thursday night’s State of the Union address, he mentioned blocking high-tech exports to China. While Biden’s order was very narrowly focused on some cutting-edge computer technology, Chinese dictator Xi Jinping’s secret order was much broader, inexorably targeting China’s vast state-owned enterprises from the United States. technology was completely eliminated.

of WSJ He said Biden’s export ban was one reason Document 79 was written, but since Edward Snowden’s leaks about U.S. surveillance technology in 2013, Xi has has promoted further dependence on

Thursday’s report explores how wall street journal I was able to view Document 79, and its existence had been rumored for some time.Japanese Yomiuri Shimbun report While the directive was disclosed and the July 2023 document number was known, the directive’s broad scope and timeline for “American removal” were not clear in the report.

Yomiuri Shimbun He elaborated on Document 79, which he described as an order for China’s state-owned enterprises to report quarterly on their progress in transitioning to domestically produced computer software and hardware. WSJ It was also mentioned.

Japanese newspapers are understandably concerned about how the order will drive Japanese computer and peripherals manufacturers out of the Chinese market, and that China will be part of the Comprehensive and Advanced Trans-Pacific Partnership. It found it extremely hypocritical to issue such an order while simultaneously attempting to join the Agreement (CPTPP). Its point is to facilitate trade between member countries.

Yomiuri Shimbun They also thought it was outrageous for China to talk about transparency and trade freedom while SASAC issued secret orders behind closed doors and refused to even mention it on its website.

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