Patcay.com – China is intensifying its drive to differentiate itself from Western technology and establish unique, homegrown solutions in response to more stringent US regulations on high-tech exports.
This transformation is evident in government procurement requests, research publications, and confidential insights and has been gaining momentum since late 2022.
Notably, there has been a significant uptick in the number of tenders issued by state-owned enterprises (SOEs), government entities, and the military for the localization of technology.
The value of these awarded projects has seen a substantial increase in the year following September 2022, amounting to approximately $191 billion allocated for replacing foreign hardware and software.
The government has set specific deadlines for SOEs to adopt domestic office software systems by 2027, with a particular emphasis on sensitive areas like digital payments.
China’s concerns about the vulnerability of Western equipment to foreign cyberattacks have driven these initiatives, leading state-affiliated researchers to advocate for enhanced anti-hacking measures in the financial sector.
Why is this significant? The rationale behind this shift is rooted in geopolitical concerns and the potential for cyberattacks. The primary focus has been on creating a distinction in computer equipment, with indications that the telecom and financial sectors will also undergo a transformation.
Despite these efforts, foreign companies continue to dominate the banking-related software sector, while domestic alternatives grapple with the challenges of meeting the sector’s stringent stability and security requirements.
Nevertheless, Huawei has emerged as a key player in this distinctive process due to its comprehensive range of products, including chips, software, and secure data processing capabilities.