Analysis: CCP Speeds up “Localization of Equipment” in Fear of Technological Sanctions

The Chinese Communist Party (CCP) is accelerating its domestic substitution efforts, forcing government agencies to switch to using domestic computers, systems, and software. Analysts believe this is part of the CCP’s strategy to decouple from Western technology in response to potential sanctions in the information field.

Recently, it has been learned that government agencies are working overtime to install domestic equipment (computers), with some even working on weekends. This is due to the accelerated domestic substitution this year, requiring key units to replace their computers with domestic products.

Domestic substitution refers to the process of replacing imported products with domestically manufactured or produced ones. The goal is to reduce reliance on imports, promote local industry development, enhance so-called economic independence, and increase economic competitiveness.

Insiders have stated that this is part of the chain of the “information creation” industry, as the CCP aims to address technological decoupling and ensure information security.

The so-called “information creation” project, officially known as “Innovative Application of Information Technology”, is described as an upgraded action plan of the CCP’s strategy for promoting “indigenous controllable technology” in the field of information technology. It covers a wide range of technical areas such as infrastructure, basic software, application software, and information security, aiming to gradually replace dependence on foreign information technology products through independent research and development.

While domestic substitution is not explicitly mentioned in official documents, many technology companies have undertaken extensive promotional campaigns.

For instance, a report from Kirin Software’s partner, “Nine Thoughts Software”, states that “Information Innovation” and “Anke (Safe and Reliable)” are important components of China’s national strategy in the information technology field, reflecting China’s pursuit of indigenous controllable technology and secure information technology.

Within the government office systems, the “information creation” project encourages the use of domestic operating systems, database management systems, middleware, and office software, replacing international brand products extensively used in the past. This includes replacing the Windows operating system with domestic systems such as Kirin and UOS, Oracle databases with domestic products like Dameng and Shentong, and office software with domestic suites like Eternal Zhong Office, Kingsoft WPS, Nine Thoughts Information Collaboration Office System, to achieve autonomous control and security reliability of key information infrastructure.

Insiders have indicated that domestic products are challenging to use at the grassroots level, lacking an application ecosystem and making troubleshooting difficult, requiring time for adaptation. Systems from Microsoft are still needed and should be transitioned gradually; otherwise, many applications might be paralyzed. Relying solely on domestic products for complex business operations could lead to various compatibility issues.

In a previous report, it was revealed in 2022 that some mainland netizens disclosed that their units required turning in old computers after the Labor Day holiday and replacing them with domestic new computers and systems. Due to incompatibility with Windows software, a Windows emulator had to be installed, resulting in a setback in office efficiency by 10 years.

A netizen from a prefectural city in western Henan Province mentioned that their city had completely switched to Hikvision computers priced at over 9,000 yuan each, which were challenging to use due to limited software. Additionally, he mentioned that the official requirement is for the entire country to complete the replacement within two years, aligning with the insider’s disclosure. It is reported that some regions were unable to implement this due to significant financial constraints that year.

A programmer from mainland China informed Epoch Times reporters that domestic operating systems are not unusable but unsatisfactory, often experienced as slow. For example, if the Linux core crashes unexpectedly, it can be resolved relatively easily at the programming level, but for the average user, it can be very troubling.

Government employees have started using this kind of system,

And some companies are also using it.

He explained that the widely used operating systems such as Windows, Mac, Android phones, and Apple phones are all wrapped in a layer of the Linux system providing a user interface for smooth operation. The current push for domestic products removes this layer of user-friendly interface, reverting to a more primitive state out of concerns for security and data privacy, causing delays and unresponsiveness for users.

It’s worth noting that CCP’s domestic substitution efforts extend beyond internal matters to global ambitions.

An article from the Chinese capital market company, Jiuding Investment, reveals that domestic substitution can be categorized into three types: import substitution, breaking bottlenecks to produce more cost-effective and superior products, replacing imported goods; technological substitution, replacing old technology with new technology; and export substitution, where Chinese companies expand globally through local innovation, achieving reverse substitution.

In response to this, commentator Guofeng expressed that since the outbreak of the Russo-Ukrainian War in February 2022, Western countries have imposed various economic and technological sanctions on Russia. These sanctions in the digital field continue to spur the CCP’s “Anke (Safe and Reliable)” replacement of non-domestic networks, hardware equipment, and basic software in government agencies.

Guofeng believes that this indicates the CCP’s adoption of an “all-industry, all-sector” information technology upgrade substitution strategy, leading to a deepening digital divide with the world. It is solely for the self-interest of the Party, for the illusory security, and to confront the Western civilized world, establishing a “digital authoritarian territory” by erecting high walls.