China wants to ‘exclude the US’ from its technology with ‘Document 79’, a secret order banning the use of US software in state-owned enterprises by 2027

• New report reveals secret Chinese order restricting US software from state-owned companies
• The order, known as “Document 79,” was issued in September 2022.
• This is part of China’s broader efforts to limit its dependence on US technology.

China has issued secret orders restricting the use of US-made software and is ramping up efforts to root out US technology in key functions, according to a new report.

The order, known as Document 79, issued in September 2022 requires state-owned enterprises in finance, energy and other sectors to replace foreign software in their IT systems by 2027. The Wall Street Journal reported Thursday.

According to the magazine, the Order in Document 79 is known in some circles as “Delete A” (short for “Delete America”).

The order was so secret that senior officials and executives were only allowed to see the documents in person, but were not allowed to copy them, people familiar with the matter told the Journal.

The move came as part of Chinese leader Xi Jinping’s broader push to reduce dependence on foreign suppliers for both economic and national security reasons.

It also follows China’s escalating retaliation with the United States, particularly on trade and technology, after the United States imposed sanctions on Chinese tech companies and sharply restricted exports of advanced semiconductors. It is.

China has already moved to restrict U.S. hardware, including server and network technology from companies such as Dell, IBM and Cisco.

The order bans U.S.-made software from key functions and could have a major impact on Microsoft and Oracle, which have profited from business in China amid rapid economic expansion.

“China is a land of milk and honey, and intellectual property was the main issue,” a former U.S. Trade Representative official involved in previous technology negotiations with China told the Journal.

“I feel like the sense of opportunity is gone right now. Companies are just enduring.”

The new directive was issued by the China State-owned Assets Supervision and Administration Commission, which oversees state-owned enterprises and enterprises.

China has a significant state-owned enterprise sector, including more than 60 of China’s 100 largest listed companies.

China’s promotion of the use of domestic technology is locally known as “xinzhuang,” which roughly translates to “IT innovation.”

This policy is part of Beijing’s national security interests, but it has become increasingly necessary as the U.S. government curbs high-tech exports to China.

Last month, Chinese regulators said central government-owned companies should play a greater role in promoting artificial intelligence development in China.

Zhang Yuzhuo, director of the State-owned Assets Supervision and Administration Commission of the State Council, said at the meeting that central state-owned enterprises should also actively embrace reforms using artificial intelligence.

They need to develop a new generation of AI technology, according to a statement released Wednesday.

The statement added that these companies should take steps to develop and promote AI in industrial revitalization.

It also says that the construction of smart computing centers should be accelerated.