Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

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.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
European Commission Plans Purchase Incentives Limited to Vehicles Manufactured Largely in the EU
French District of Pas-de-Calais Introduces Immediate License Suspension for Drivers Using Mobile Phones
Volkswagen Targets €60 Billion in Cost Reductions as Sales Decline and Global Pressures Intensify
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Poland's President Advocates for Evaluating Independent Nuclear Weapons Development
Mayor of Serdobsk in Russia’s Penza Region Resigns After Housing Certificates Granted to Migrant Family Trigger Public Outcry
China’s EV Makers Face Mandatory Return to Physical Buttons and Door Handles in Driver-Distraction Safety Overhaul
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
Heineken announces cut of 6,000 jobs due to declining beer demand
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
×