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Home Finance Business Finance

Why China Remained Unaffected by the Global IT Outage on Friday: Insights

Evelyn Cheng by Evelyn Cheng
July 22, 2024
in Business Finance
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Why China Remained Unaffected by the Global IT Outage on Friday: Insights
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In a world increasingly reliant on digital infrastructure, a recent global IT outage has thrown a stark light on the geopolitical landslides shifting beneath the global tech landscape. This incident, emerging from the heart of the United States, has left a significant imprint on businesses worldwide, except for a notable exception: China.

The starting point of this unexpected digital dilemma was traced to a Texas-based titan in cybersecurity: CrowdStrike. Renowned for its pivotal role in safeguarding the digital fortresses of some of the planet’s most influential banks, healthcare organizations, and energy behemoths, CrowdStrike inadvertently became the epicenter of this disruption due to an update gone awry.

Gao Feng, a senior figure at the prestigious Gartner, articulated in an interview with CNBC that while the rest of the world grappled with this unexpected storm, China observed from a distance, largely insulated. He noted, “The impact of Friday’s CrowdStrike incident on China was very small, with almost no impact on domestic public life.” This statement shed light on an intriguing facet of China’s digital ecosystem, revealing an environment where local enterprises predominantly sidestep CrowdStrike’s offerings, thus evading the chaos unfurling worldwide.

The narrative in China that Friday was one of seamless digital interactions across sectors such as ride-hailing and e-commerce. Confirmations from Chinese state media underscored this reality, reporting operational normalcy at Beijing’s aviation gateways and unaffected operations among its flagship carriers such as Air China, China Eastern Airlines, and China Southern Airlines.



One discourse that did resonate within the Chinese digital domain was centered on Microsoft Windows’ tribulations in seamlessly integrating the faltered update from CrowdStrike’s Falcon suite. This, in turn, unleashed a cascade of device restarts clad in the infamous blue. It’s noteworthy that Microsoft’s digital products, including Windows, command a significant majority within China’s computing landscape, reflective of a 87% hold in personal computer shipments last year according to Canalys. This figure starkly surpasses the global metric.

The ripple effect of this technical tumult was so pronounced that it birthed a viral hashtag on Weibo, humorously thanking Microsoft for an impromptu leave. However, the fleeting nature of digital attention soon diverted the masses towards local narratives, a testament to the dynamism of China’s digital culture.

In an environment where the digital skies seemed darker for many parts of the globe, the enigmatic resilience demonstrated by China raises compelling discourse. This divergence is rooted in a policy landscape aggressively veering towards domestic technological sovereignty and data residency, borne out of national security exigencies. Amidst this digital realpolitik, the adoption of homegrown platforms is being propelled, with entities like Tencent, 360, and others becoming linchpins of China’s cybersecurity defense lineup.

CrowdStrike’s own analytics propel this narrative, delineating an active digital skirmish that sees China-nexus adversaries operating with unparalleled fervor on the global stage. This spectacle of cyber resilience and digital sovereignty underscores the multifaceted reality of our interconnected digital existence.

Courtesy of CNBC’s diligent reporting, spearheaded by the insights of Ryan Browne, this narrative is more than a mere recount of an IT anomaly; it’s a window into the evolving geopolitics of technology, a domain where digital fortresses are as pivotal as their physical counterparts.

Why don’t Chinese companies use CrowdStrike?

The frosty reception towards CrowdStrike within China’s corporate boundaries isn’t merely a preference but a strategic distancing. This inclination towards local offerings over foreign software isn’t solely driven by commercial tastes but is deeply interwoven with the fabric of national security and digital sovereignty. This narrative is further affirmed by the growing adoption of the Unity Operating System (UOS) among state-owned enterprises, a clear testament to China’s sweeping vision for a self-reliant digital infrastructure.

As the digital drums of warfare echo louder in the corridors of cyberspace, China’s posture remains one of guarded digital autonomy, pivoting towards indigenous innovation to fortify its digital horizon against perceived threats, be they of cyber espionage or systemic disruptions.

In this digital ballet, CrowdStrike’s exclusion from China’s cybersecurity dance card isn’t just a tale of market preference; it’s a choreographed move in the grand geopolitical dance of digital dominance.

In conclusion, the global IT outage orchestrated by a seemingly innocuous software update from CrowdStrike has opened a Pandora’s box of digital divide and resilience. As countries and corporations navigate the tempestuous waters of cybersecurity, the narratives emerging from China serve as a compelling saga of digital sovereignty, resilience, and the unceasing quest for technological independence. In a world increasingly divided by digital fault lines, this episode serves as a prologue to the intricate dance of cyber diplomacy and national security in the digital age.

For those who look to delve deeper into the vortex of digital news, following the trail blazed by this incident and beyond, DeFi Daily News promises to be your digital compass in this uncharted territory. So, as we close this chapter of digital discourse, let us brace for the fascinating odyssey that lies ahead in the annals of cybersecurity and digital governance. In the end, the only certainty is change, and in the realm of digital evolution, it’s a spectacle to behold.



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