Beautiful Virgin Islands

Tuesday, Feb 11, 2025

Challenge or Opportunity? How China's Digital Silk Road May Change Global Technology Order

Challenge or Opportunity? How China's Digital Silk Road May Change Global Technology Order

Besides challenging the US' Big Tech dominance across the world, the Beijing-led Digital Silk Road initiative provides its customers with vast opportunities through competitively priced digital products and services.

From 25 to 26 April, the People's Republic will hold the Fourth Digital China Summit in Fuzhou, the capital of the Fujian Province. The event will be a platform for facilitating cooperation for e-governance and the digital economy, and advance the development of China's Digital Silk Road (DSR) initiative.

DSR was launched in 2015 by Beijing as part of its ambitious Belt and Road Initiative (BRI). Within this strategy, China is providing development and financial aid to participating states along the New Silk Road. When it comes to DSR, this assistance includes upgrading recipients' telecom networks, developing e-commerce and mobile payment systems, as well as artificial intelligence, surveillance, smart cities, cloud computing, and other cutting edge technologies.


​One of DSR's elements is BeiDou, China's global satellite navigation system – a worthy rival of the US' GPS – which has already been adopted by a number of countries in Asia, Middle East, and Africa. According to some estimates, one-third of the countries participating in BRI (approximately 138) are currently cooperating within the framework of DSR initiatives.


​The DSR's backbone is made up of the Pakistan and East Africa Connecting Europe (PEACE) 15,000 km-long (9,300 mile) subsea cables meant to tie Asia, Africa, and Europe together. The network, which is designed to transmit over 16Tbps per fibre pair, is owned by Hengtong Group, a China-headquartered international optical fibre and power cable manufacturer.

China Digital Silk Road


The Mediterranean section of the cable going from Egypt to France has already been laid. In March 2021, the Special Communications Organisation (SCO), the telecommunications branch of the Pakistan Army, was set to start laying the final stretch of a cross-border fibre optic cable between Rawalpindi and the port cities of Karachi and Gwadar in partnership with China’s Huawei Technologies, according to Nikkei. The PEACE cable is expected to become operational later this year.

DSR Catalyses a More Digitalised World


Meanwhile, American influential think tanks warn that China's initiative poses a challenge to the established dominance of Western digital companies and could substantially diminish their market share in the future.

"The Digital Silk Road advances China’s bid for technological independence at home while moving it toward the centre of global networks," noted the Washington-based Centre for Strategic and International Studies (CSIS) in February 2021.



​According to the think tank, China has become increasingly competitive in delivering advanced telecom and subsea cable systems. Besides this, the DRS initiative is "well-timed, dovetailing with powerful, longer-running trends," CSIS admitted, stressing that the COVID pandemic made digital infrastructure "even more essential." The think tank argued that the Biden administration should step up the US technological development to tackle China's challenge.

The Council on Foreign Relations (CFR), a US influential nonprofit think tank shares CSIS' concerns, suggesting that China could resort to espionage and coercion therefore misusing its telecom dominance. Beijing may train interested DSR on how to use surveillance capabilities against opposition groups and how to monitor and censor the internet in real time, according to the think tank.

Digital Beijing Building


China's digital independence bid might play into the hands of global customers, suggest Richard Ghiasy and Rajeshwari Krishnamurthy in their op-ed for The Diplomat, a Washington DC-based magazine specialising in Indo-Pacific affairs.

"A small number of actors lead the tech world, and US tech giants Alphabet (Google), Intel, Amazon, Cisco, and Facebook in particular have a near-global monopoly in their respective domains," the researchers highlight.

By the end of 2018, American Big Tech owned or leased over half of the undersea cable bandwidth which carried close to 98 percent of international internet data and telephone traffic. "Such dominance is not healthy and several actors, including the EU and Australia, have taken steps to curb these tech giants’ sway," the researchers pointed out, adding that China, for its part, may provide competitively priced digital products and services.

While theoretically China could gain a "valuable tool of local political influence" by manipulating other countries' reliance on its infrastructure, this hypothetical scenario, however, "is not exclusive to China," the authors believe. "As the Edward Snowden revelations and the Facebook-Cambridge Analytica data scandal showed, any tech provider or cyber tech-advanced actor could abuse their position, if so desired," Ghiasy and Krishnamurthy remark.

The DSR catalyses a "more digitalised world" which might offer spinoff investment and sales opportunities not only for Chinese tech-firms but also to local companies and non-tech sectors, according to the researchers. At the same time, the Beijing endeavour obviously challenges the US dominance in the digital sphere and global market.

"Regardless of where one stands, amidst a pandemic that has wreaked havoc on the global economy, digitalisation and economic growth are as welcome as ever," the authors conclude.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Australian Billionaires Set to Encounter New Wealth Tax Under Greens Initiative
U.S. Secret Service Invests Two Million Dollars in High-Quality, Effective Recruitment Ad Directed by Michael Bay
MPs to Receive Proposed 2.8% Pay Increase, Raising Salaries to £93,904 – It’s Legal, and That’s Exactly the Problem
The European Union Shifts Focus to AI Innovation Amid Global Competition (or at least this is what they claim)
Europe's far-right leaders pledge to 'reclaim' the continent in the wake of Trump's reelection.
Keir Starmer Under Examination Regarding His Legal Strategy
Merz and Scholz Spar Over Migration and Economic Strategies in Pre-Election Discussion
"Marrow stupid": Senator John Kennedy Blasts UK Prime Minister Keir Starmer Over Chagos Islands Transfer
Nigel Farage’s Reform UK Surge Reshapes Electoral Dynamics
Kemi Badenoch Faces Internal Criticism After 100 Days as Tory Leader
Campaigners Urge UK to Apologise for Forced Adoptions
Church of England Upholds Traditional Eucharistic Elements Amid Calls for Alternatives
Rayner Defends Approach at Grenfell Tower Meeting Amid Dismantling Plan
China Implements Tit-for-Tat Tariffs on US Goods Amid Trade Escalation
Italy and Wales Set for Six Nations Clash at Rome’s Stadio Olimpico
Ministry of Justice Apologises Over Prisoner Early Release Letter Error
Rare First Edition Harry Potter Book Sells for Over Twenty-One Thousand Pounds
Drax Power Station Under Scrutiny for Incomplete Wood Sourcing Reporting
UK Government Reaffirms Pledge to Build 1.5 Million New Homes by 2029
Freed Israeli Hostage Learns of Family's Death After Release from Gaza
French President Macron Employs Deepfake Technology to Advocate for AI Summit
Trump Names Musk to Investigate Government Fraud Amidst Controversy
Police Stop Ed Sheeran's Street Performance in Bengaluru
FBI Alerts Smartphone Users About Toll Scam Threat
Australian Educator Declares Identity as a Cat, Sparking Parental Backlash
Kremlin Addresses Claims of Trump-Putin Phone Conversation in Light of Ukraine Crisis
Trump Connects with Putin to Address the Ukraine Crisis
Super Bowl Ad Prices Soar to Record Highs Amid Streaming Surge
China Achieves 2030 Solar Energy Targets Early, Cuts Subsidies for Renewable Energy
Trump Signs Executive Order Prioritizing White South African Refugees
Europe Faces Growing Security Concerns and Trump's New Demands on Ukraine
Trump Revokes Security Clearances of Biden Officials, Including Blinken and Sullivan
Justin Bieber Sparks Concern as New Footage Raises Health Fears
European Right-Wing Leaders Celebrate Trump’s Impact on Global Politics
Trump Administration Directs Admiral to Leave Official Residence Within Three Hours
British Health Secretary Andrew Gavin Fired Over Controversial Messages
Report: Iran Attempted to Assassinate Trump During Election Campaign
Trump Declares He Won't Deport Prince Harry, 'He's Already Dealing with Enough Issues with His Wife,' He Comments.
Macron's AI Vision Encounters Hindrance in the Global Technology Competition.
TikTok Sued Over Alleged Child Deaths Caused by 'Blackout Challenge'
Governments Prohibit DeepSeek AI Due to National Security Issues
Russian musician Vadim Stroykin passes away following an apparent fall during a police raid.
Zelensky Suggests Mineral Collaboration with Trump for Security Assistance
Naomi Campbell Claims Unawareness of Financial Irregularities at Fashion for Relief.
House Republican Introduces Bill Aimed at Limiting AI Exports to China
Trump Signs Executive Order Prohibiting Transgender Athletes from Competing in Women's Sports
Intense Pressure Builds for a Free Trade Agreement Between the UK and GCC in Light of Economic Difficulties
UAE Aids in the Transfer of 300 Prisoners Between Russia and Ukraine.
Trump Suggests U.S. 'Takeover' of Gaza, Sparking Global Worries
At least ten fatalities reported in Swedish school shooting, authorities confirm.
×