China’s recent directive, known as Document 79, signifies an intensified effort by the Chinese government to diminish American technological influence within its borders. This initiative, often referred to as “Delete A” or “Delete America,” underscores China’s determination to achieve self-reliance and safeguard its long-term security interests.
Released in 2022, Document 79 mandates state-owned enterprises across various sectors, including finance and energy, to phase out foreign software from their IT systems by 2027. This directive represents a significant escalation in China’s ongoing campaign to prioritize domestic technology over foreign alternatives.
Historically, American tech giants such as Dell, IBM, and Cisco Systems have thrived in China, contributing to the country’s rapid industrial development. However, Chinese leadership now aims to sever ties with these companies in pursuit of self-sufficiency and autonomy in critical sectors.
Initially targeting hardware manufacturers, China has gradually replaced foreign equipment with products from domestic competitors. Document 79 extends this initiative to software providers, posing challenges for companies like Microsoft and Oracle, which have enjoyed profitability in the Chinese market.
This push for technological independence aligns with Chinese President Xi Jinping’s broader strategy to reduce reliance on Western technology and enhance domestic innovation capabilities. By prioritizing self-sufficiency, China seeks to mitigate vulnerabilities stemming from geopolitical tensions and trade disputes.
The issuance of Document 79 coincided with escalating tensions between the U.S. and China, marked by chip export restrictions and sanctions on Chinese tech firms. In response, China has accelerated efforts to bolster its domestic tech sector, leveraging the massive purchasing power of state-owned enterprises.
State-owned firms have significantly increased procurement of domestic brands, despite potential shortcomings compared to foreign alternatives. This trend, known as “Xinchuang” or “IT innovation,” reflects China’s determination to localize technology amid geopolitical uncertainties.
Premier Li Qiang reaffirmed China’s commitment to technological advancement during the country’s legislative sessions, signaling continued investment in science and technology. Increased spending aims to propel domestic innovation and reduce dependence on foreign technology.
At trade fairs across China, vendors promote homegrown tech as viable alternatives to foreign brands, further reinforcing China’s shift towards domestic solutions. Improved usability and interoperability with popular platforms like WeChat have enhanced the appeal of domestic software.
Moreover, China’s focus on cloud-based solutions has enabled local companies to gain traction in database management, challenging the dominance of Western incumbents like Oracle and Microsoft. Chinese firms like Alibaba and Huawei have emerged as key players in this evolving landscape.
While there are still opportunities for Western companies in niche markets and sales to multinational corporations, China’s preferential treatment of domestic providers poses challenges for foreign firms. Analysts anticipate further erosion of Western market share as China continues to prioritize indigenous innovation.
In conclusion, China’s aggressive agenda to purge American tech from its market reflects a strategic shift towards self-reliance and innovation. As China seeks to assert technological independence, foreign companies face mounting obstacles in one of the world’s largest markets.
