On Thursday, the Wall Street Journal reported on a secret 2022 Chinese government document, named Document 79.
The directive, in which SASAC notified government entities and state-owned enterprises, according to Japan News, extends efforts to nationalize Chinese IT systems—and as a result, eject US technology from the country.
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The effort, according to the Wall Street Journal, is referred to by some as “Delete A” (with "A" standing for America).
The order was issued in September 2022 and coincided with US sanctions on Chinese tech companies. It aims to diminish reliance on foreign powers as a component of a larger goal for the world’s most populous nation to become more self-sufficient and to increase national security.
The strategy seems in line with existing endeavors to phase out the use of foreign, especially US, suppliers. Hardware manufacturers such as Dell, IBM, and Cisco have already seen their products discarded for Chinese competitors.
The directive could have major implications for companies such as Microsoft and Oracle, who, up until this point, have found a very profitable market in China.
What is SASAC?
The State-owned Assets Supervision and Administration Commission of the State Council, or SASAC, is a special commission of the People's Republic of China under the State Council. SASAC was established in 2003.
Its primary responsibility is central government-owned enterprises. It helps manage the state-owned enterprises (SOEs), ensuring that they contribute to economic and social goals on a national level.