What is localization substitution? Why do we need domestic substitution?

What does localization substitution refer to? Localization substitution aims to establish independent and controllable IT industry standards and ecology in China through the reconstruction of IT software and hardware environment.

In recent years, the international situation has been complex and ever-changing, and foreign countries have continued to increase sanctions on China's technology industry, including hundreds of Chinese high-tech enterprises on the export control entity list; After the outbreak of the Russia-Ukraine conflict, many leading IT manufacturers stopped supplying products to Russia in succession. Driven by uncontrollable international factors and the demand for domestic digital economy transformation, the urgency of independent and controllable development of China's IT industry has become increasingly prominent. In order to solve the problem of core technology bottlenecks, technological self-reliance and self-improvement have become a national strategy in China. The communication, computer, military and medical equipment industries will become important areas for domestic substitution industries.

At present, the autonomous and controllable industrial chain is divided into four major links: underlying infrastructure (including hardware such as servers and network equipment), basic software (including operating systems, databases, middleware, etc.), application software (including government software, enterprise management software, etc.), and information security.

With the continuous support of national policies, the localization ecology of software and hardware in China has begun to take shape, and localization substitution has achieved certain results in key industries such as government affairs and finance. The promulgation and implementation of laws and regulations such as the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law have made the requirements for information security construction and data security protection clearer. Simultaneously building an information security system and promoting the application of domestically produced substitute and independently controllable products are also necessary steps in information security construction.

The significance of domestic substitution is to enhance the independence of various industries, especially core technologies, in China, thereby laying the foundation for the economic and technological development of our country, and also laying the foundation for further realizing the goal of becoming a technological and industrial powerhouse.