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China kicks off more foreign tech firms from its government procurement list

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In its continued attempt towards driving out foreign tech and bolstering home-grown business and employment, the Chinese government has staged yet another critical step, by continuing its anti-foreign tech strategy of kicking off tech majors from its procurement list.

Earlier reports surfaced that China culled Apple, Symantec and Kaspersky Lab from its list of approved tech purchases. Now it appears that Cisco, Citrix, and McAfee have met a similar fate.

If statistics are to be considered, China has proved to be quite successful in bringing down business with foreign companies and have reportedly staged one third drop over the past two years. Any number of reasons can be attributed to the list change, including assurances from domestic firms that their products are more secure than foreign solutions.

This can also be linked with cybersurveillance activities run by the National Security Agency that were brought to light by former NSA contractor Edward Snowden. Apple was also alleged to have ties with a secret NSA mission and was later kicked out of the list.

In May last year, China beefed up its security review system for foreign IT firms with broader scope and more vague criteria. Besides the immediate economic benefits, China also gets greater control over its internet and more influence over the future development of global IT trends.

These moves appear to come from China’s end unhesitatingly. China has armed its home-grown tech companies with all sorts of necessary equipments and have gradually taken over foreign companies that used to dominate in the country. Xiaomi, for example, brutally dethroned Samsung as the topmost smartphone vendor in the country.

This strategy has also wide opened opportunities in terms of employment for Chinese since it has also been applied to the human resource department.

Security products, especially, have faced the harsh decision from Chinese government and almost half of them have already faded out from the list. Though, China has shown a huge jump in terms of approving tech purchases, most of them comes from home grown companies itself.

Chinese government has also begun a process to set up a new, National Venture Capital fund to help start-ups and upcoming entrepreneurs. The new fund will be a massive 40 Billion RMB (US$ 6.5 Billion) in size and will be used to fund seed-stage tech start-ups in the country.


 

Senior Writer


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