China is getting rid of U.S. technology in the public sector

Published: 07 March 2024, 20:10 (Europe/Moscow)

China is getting rid of U.S. technology in the public sector

China is actively seeking to eliminate the use of U.S. technology in government procurement.

According to the The Wall Street Journal, the Chinese government has issued a secret decree as part of an initiative to "replace America," which aims to completely abandon American technology by 2027.

The secret document, known as Directive 79, was issued in September 2022 by the State-owned Assets and Management Commission under China's State Council. It is intended to reinforce the campaign to replace American technology, known as "Project A," which stands for "Anti-American."

According to reports, "Directive 79" was so confidential that even high-ranking officials and executives only had access to its contents, barring copying of the document.

Companies are ordered to regularly report on their progress in replacing imported technology with Chinese technology, and complete freedom from U.S. technology must be achieved by 2027.

According to procurement data provided to the The Wall Street Journal, state-owned companies have significantly increased their purchases of domestic products in response to U.S. sanctions, which have led to significant supply problems with microchips and other equipment. Banks, brokerages and government organizations such as the post office have been aggressively increasing their purchases of Chinese goods.