How China Avoided the Worst of the Global Tech Meltdown
While much of the world struggled with widespread tech disruptions on Friday, China emerged relatively unscathed. The reason for this is quite straightforward: the cybersecurity firm CrowdStrike has minimal presence in China. Chinese organizations are reluctant to purchase software from an American company that has previously highlighted the cyber-security threats posed by Beijing.
Moreover, China’s reliance on Microsoft is significantly lower compared to the rest of the world. Domestic giants like Alibaba, Tencent, and Huawei dominate the cloud services market. Consequently, reports of outages in China mainly involved foreign firms or organizations. For instance, some users on Chinese social media reported difficulties checking into international hotel chains such as Sheraton, Marriott, and Hyatt within Chinese cities.
In recent years, China has been systematically replacing foreign IT systems with domestic alternatives across government bodies, businesses, and infrastructure operators. This move has led some analysts to dub this parallel network the “splinternet.”
Josh Kennedy White, a cybersecurity expert based in Singapore, commented, “It’s a testament to China’s strategic handling of foreign tech operations. Microsoft operates in China through a local partner, 21Vianet, which manages its services independently of its global infrastructure. This setup insulates China’s essential services – like banking and aviation – from global disruptions.”
For Beijing, reducing reliance on foreign technology is a matter of national security. This approach mirrors the actions of some Western countries, such as the UK’s ban on Chinese-owned TikTok on government devices in 2023 and the US’s ongoing efforts to restrict advanced semiconductor sales to China, citing national security concerns.
An editorial in the state-run Global Times newspaper subtly referenced these restrictions, criticizing countries that “constantly talk about security” yet fail to ensure real security. The piece suggested that the US, by trying to control global technology usage, had inadvertently caused global chaos through negligence by one of its own companies.
The Global Times also criticized the internet giants that “monopolize” the industry, arguing that relying solely on top companies for network security might hinder inclusive governance and introduce new risks. This likely alluded to the debate over intellectual property, with China often accused of copying or stealing Western technology. Beijing, however, insists on advocating for an open global technology marketplace while maintaining strict control over its domestic tech scene.
Despite China’s relative insulation from the tech meltdown, not everything was unaffected. Some workers humorously expressed gratitude to Microsoft for ending their workweek early. On Friday, “Thank you Microsoft for an early vacation” trended on the social media site Weibo, with users sharing pictures of blue error screens.
