London Daily

Focus on the big picture.
Friday, Nov 28, 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

0:00
0:00
Close
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
×