The decoupling of the national economies is also being driven forward rapidly by China. For example, 30% of foreign hardware and software is to be replaced by Chinese alternatives in 2020, another 50% by 2021 and the remaining 20% by the following year. This directive, known in China as the “3-5-2 policy”, could affect 20 to 30 million devices.
The targets are part of China’s strategy to gradually reduce its dependence on foreign technology and accelerate the development of domestic capabilities. China will decouple itself from the rest of the world in other technology areas that are considered sensitive to maintaining national security. The directive recalls how in 2019 Washington prohibited the US government authorities from using Chinese technology.
The goals of the Chinese “3-5-2 Directive” are very ambitious. Because if many government agencies already use Chinese hardware, it usually contains foreign components. Moreover, most Chinese software runs on operating systems manufactured in the US. Efforts to develop a domestic operating system have recently received a boost through the merger of two Chinese software developers.
China is not only trying to reduce its dependence on foreign technology, but also to take the lead in the telecommunications sector. Already in November 2019, a Chinese telecommunications provider officially launched 5G services in the world’s largest market. Initially, the major Chinese cities and key urban areas will be equipped with high-speed Internet.
The Chinese government has proposed that 5G network coverage be rolled out in all cities by the end of 2020. In the fourth Internet-based industrial revolution, 5G is an important stage of fierce competition for many countries. China’s major successes in 5G not only pose a threat to Western technology companies, but also demonstrate the government’s determination to innovate independently in science and technology. We expect that China’s decoupling from the West will quickly extend to other areas such as human resources, data or supply chains.
Picture: Unsplash / Hiurich