China is accelerating plans to replace American and foreign technology, quietly empowering a secretive government-backed organization to vet and approve local suppliers in sensitive areas from cloud to semiconductors, people familiar with the matter said.
Formed in 2016 to advise the government, the Information Technology Application Innovation Working Committee has now been entrusted by Beijing to help set industry standards and train personnel to operate trusted software. The quasi-government body will devise and execute the so-called "IT Application Innovation” plan, better known as "Xinchuang" in Chinese. It will choose from a basket of suppliers vetted under the plan to provide technology for sensitive sectors from banking to data centers storing government data, a market that could be worth $125 billion by 2025.
So far, 1,800 Chinese suppliers of PCs, chips, networking and software have been invited to join the committee, the people said, asking not to be identified discussing private information. The organization has so far certified hundreds of local companies this year as committee members, the fastest pace in years, one of the people said.