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How China Averted the Worst of the Global Tech Downturn

By T. Jayani, JadeTimes News

 
How China Averted the Worst of the Global Tech Downturn
Image Source : Anadolu

While most of the world faced widespread tech issues on Friday, China largely avoided the chaos. This is primarily because CrowdStrike, the American cybersecurity firm at the center of the disruption, has little presence in China. Chinese companies generally avoid purchasing software from a firm that has previously raised alarms about cyber threats from Beijing.


Moreover, China relies less on Microsoft than other countries, with domestic giants like Alibaba, Tencent, and Huawei dominating the cloud services market. Consequently, reports of outages in China were mostly limited to foreign firms. Chinese social media users complained about difficulties checking into international hotel chains like Sheraton, Marriott, and Hyatt within Chinese cities.


In recent years, China has increasingly replaced foreign IT systems with domestic alternatives, creating what some analysts call a "splinternet." This strategy has helped China remain insulated from global tech disruptions. According to Josh Kennedy White, a cybersecurity expert in Singapore, Microsoft operates in China through a local partner, 21Vianet, which manages services independently of Microsoft's global infrastructure. This setup protects China’s essential services, such as banking and aviation, from international disturbances. Beijing views this reduced dependence on foreign systems as crucial for national security.


This approach mirrors actions by some Western countries, such as the 2019 ban on Huawei technology and the UK's 2023 ban on TikTok on government devices. The US has also restricted sales of advanced semiconductor technology to China and limited American investments in Chinese tech, citing national security concerns.


An editorial in China's state run Global Times criticized these US measures, arguing that the US, while often discussing security, has ironically caused global disruption through its own tech company's failures. The editorial also criticized the reliance on major internet giants for network security, suggesting that it could hinder inclusive governance and introduce new risks.


China was not entirely unaffected, some workers expressed gratitude on social media for an early start to their weekend, thanking Microsoft for the unexpected downtime, with "Thank you Microsoft for an early vacation" trending on Weibo, accompanied by images of blue error screens.

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