For American tech companies in China, the writing is reportedly on the wall or as an exclusive report in Wall Street Journal (WSJ) said, “its also on paper, in Document 79.” For those wondering what this Document 79 is, it is a directive issued by the Chinese government that some refer to as “Delete A,” for Delete America.
Document 79 is said to be so sensitive that high-ranking officials and executives were only shown the order and weren’t allowed to make copies. The document reportedly requires state-owned companies in finance, energy and other sectors to replace foreign software in their IT systems by 2027.
Over the years, American tech giants had long thrived in China as they “hot-wired the country’s meteoric industrial rise with computers, operating systems and software.” Chinese leaders now want to change that for a “push for self-sufficiency and concerns over the country’s long-term security.”
The first targetsThe first targets have been the US hardware makers: Dell, IBM, HP and Cisco Systems. All these companies have gradually seen much of their equipment replaced by products from Chinese competitors. And as China focused on replacing its hardware, the China revenues of these companies have steadily declined.
The likes of Microsoft and Oracle too are said to be losing ground in the field. The effort is just one salvo in a yearslong push by Chinese leader Xi Jinping for self-sufficiency in everything from critical technology such as semiconductors and…
Document 79 is said to be so sensitive that high-ranking officials and executives were only shown the order and weren’t allowed to make copies. The document reportedly requires state-owned companies in finance, energy and other sectors to replace foreign software in their IT systems by 2027.
Over the years, American tech giants had long thrived in China as they “hot-wired the country’s meteoric industrial rise with computers, operating systems and software.” Chinese leaders now want to change that for a “push for self-sufficiency and concerns over the country’s long-term security.”
The first targetsThe first targets have been the US hardware makers: Dell, IBM, HP and Cisco Systems. All these companies have gradually seen much of their equipment replaced by products from Chinese competitors. And as China focused on replacing its hardware, the China revenues of these companies have steadily declined.
The likes of Microsoft and Oracle too are said to be losing ground in the field. The effort is just one salvo in a yearslong push by Chinese leader Xi Jinping for self-sufficiency in everything from critical technology such as semiconductors and…