For American tech companies in China, the document is posted on the wall, or, as the Wall Street Journal (WSJ) exclusively reports, “Document 79 is also on paper.” There is. For those wondering what Document 79 is, it's a directive issued by the Chinese government, referred to by some as “Delete A,” short for Delete America.

Document 79 is said to be so sensitive that senior officials and executives were only shown the orders and were not allowed to make copies. The document reportedly requires state-owned enterprises in finance, energy and other sectors to replace foreign software in their IT systems by 2027.

American tech giants have thrived in China for years, “connecting with China's rapid industrial development with computers, operating systems and software.” Chinese leaders now want to change this situation due to “the promotion of self-sufficiency and concerns for the country's long-term security.”

first targetThe first targets were American hardware manufacturers such as Dell, IBM, HP, and Cisco Systems. All of these companies have gradually seen much of their equipment replaced by products from Chinese competitors. And as China focuses on hardware updates, these companies' revenues in China have steadily declined.

Microsoft, Oracle, and others are also said to be losing ground in this space. The effort is just one salvo in Chinese leader Xi Jinping's long-standing push for self-sufficiency in everything from critical technologies such as semiconductors and fighter jets to grain and oilseed production. do not have. The broader strategy is for China to reduce its dependence on the West for food, raw materials and energy and focus instead on its domestic supply chain.

The rise of economic nationalismAbout six years ago, most government tenders called for Western-branded hardware, chips and software, the report said. “By 2023, many people will seek Chinese high-tech products instead.”

Looking ahead, the report cited analysts as saying Western countries could fall further behind in the Chinese market due to priority demand from China's state-owned sector. However, as the report states, all is not lost. “China continues to offer opportunities for Western companies, particularly in advanced technology areas where China remains behind, and in sales to multinational companies operating in China.”

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