China Intensifies Efforts to Eliminate American Technology in the Public Sector

The Wall Street Journal reports that the Chinese government has issued a secret directive known as “Document 79,” which orders state-owned enterprises to completely replace foreign software with Chinese alternatives. The directive was released by the State-owned Assets Supervision and Administration Commission and the State Council of the People’s Republic of China in September 2022. It expands the campaign to phase out American technology, a movement some refer to as “Delete A,” meaning “Delete America.”

According to sources familiar with the situation, “Document 79” was so secret that high-ranking officials and executives were only shown the order and were not allowed to make copies. Companies are required to report their progress on import substitution every quarter, with the goal of fully replacing foreign software with Chinese products by 2027.

The publication notes that the directive is a response to U.S. sanctions, which have begun to significantly impact the supply of microchips and equipment to China. According to procurement documents obtained by the WSJ, state-owned companies have substantially increased their purchases of domestic products. Buyers include banks, brokerage firms, and government organizations such as the postal service.