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China wants to rid itself of Western tech by 2027 -- outlines domestic alternatives in 'Document 79' (www.tomshardware.com)

submitted 8 months ago by [email protected] to c/[email protected]

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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.

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[–] GregorGizeh 45 points 8 months ago* (last edited 8 months ago) (16 children)

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.

[–] st0v 10 points 8 months ago (1 children)

hello~

westerner tech guy in China here. they haven't thrown me out yet, but then they haven't grown up an equivalent of we do yet either. they haven't tried to steal it or learn our secrets either.

nope for the last 3 or 4 years they've asked to license it to a local firm or better yet sell it outright to them. each time the price goes up and I suspect at some point it will become so irresistible that the founders will do it.

interestingly the sanctions closed us off from a lot of big institutes and companies who faced with losing the capability entirely just went ahead and acquired a bunch of Japanese stuff and jerry rigged it together. so that sucked.

because that's it, if we don't sell it to them someone else will and that'll be the end of the party for everyone.

pretty sure this has played out in history before.

[–] [email protected] 2 points 8 months ago

use that’s it, if we don’t sell it to them someone els

The article imply they aren't looking for another seller but to domestically develop these products they need themselves. Although it's still probably easier for them to use products from other non-western nations.

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