The directive, known as Document 79, strengthens Beijing's efforts to replace U.S. technology with domestic alternatives. From the report: For American tech companies in China, the problem lies at the wall. This is also stated in document 79. A 2022 Chinese government directive expands efforts to export American technology, an effort some are calling Delete A, short for Delete America. Sources said Document 79 was highly confidential, with high-ranking officials shown only the orders and not allowed to make copies. The law requires state-owned companies in the finance, energy, and other sectors to replace their IT systems with foreign software by 2027.
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. The first target was hardware manufacturers. Dell, International Business Machines, and Cisco Systems have gradually replaced much of their equipment with Chinese competitors.
Document 79, named after the document's number, is aimed at companies that provide software that enables everyday operations, from basic office tools to supply chain management. Companies like Microsoft and Oracle are losing ground in the sector, one of the last bastions of foreign technology profitability in this country. 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.