How China Navigated the Global Tech Disruption?

While many countries struggled with widespread tech disruptions last Friday, China largely avoided the worst effects. The main reason behind this is that CrowdStrike’s software, which was at the center of the outage, is not widely used in China. Moreover, China’s heavy reliance on domestic tech providers such as Alibaba, Tencent, and Huawei means it is less dependent on foreign technologies compared to other nations.

When outages did occur in China, they primarily affected foreign businesses and organizations. For instance, some users reported issues accessing international hotel chains like Sheraton and Hyatt in Chinese cities.

In recent years, China has strategically shifted from foreign IT systems to domestic alternatives, creating what some analysts call a “splinternet.” This move is part of a broader strategy to enhance national security by reducing dependence on foreign technology, similar to actions taken by Western countries against Chinese firms like Huawei and TikTok.

Microsoft, for example, operates in China through a local partner, 21Vianet, which manages its services separately from its global operations. This arrangement helps shield critical Chinese services, such as banking and aviation, from global tech disruptions.

Beijing’s approach reflects its aim to bolster national security by avoiding reliance on foreign technology. The recent US efforts to limit Chinese access to advanced semiconductor technology and investment in Chinese tech further highlight the geopolitical tech tensions.

An editorial in the state-run Global Times criticized the notion of security being used to justify tech restrictions, suggesting that while the US sets terms for global tech usage, its own companies can cause widespread disruptions. The piece also critiqued the tech giants for monopolizing network security, which could potentially introduce new risks.

Despite the general stability, some Chinese workers humorously expressed their gratitude for the early weekend thanks to the disruptions, with “Thank you Microsoft for an early vacation” trending on social media.