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China's Digital Strategy: A Blueprint for Technological Dominance - CLAWS

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China’s Digital Strategy, often known as Digital China, is a comprehensive plan designed to make the nation a global leader in technical innovation, cyberspace regulation, and digital infrastructure. Since digital technology is a major force behind national security, economic expansion, and international influence, China’s leadership has realized that a comprehensive top-down strategy for digital transformation is required. Digital China strategy is enmeshed within national policies and industrial planning, with an aim to position China at the forefront of digital world and governance.

Digital China strategy finds its genesis in Xi Jinpings’ Digital Fujian strategy propagated in the early 2000’s. It was first discussed in the 18th Party Congress in 2012 when the VISION was spelt out. During the 19th Party Congress in 2017 the National Strategy was spelt out. It has been framed through the lens of Marxist thought process and is hence ideological in nature. It is a form of Digital Marxism where Data is the basis of Digital Economy. It seeks Marxist reconstruction of Forces of Production into New Quality Productive Forces where the erstwhile labour would be substituted by Information.

The Digital China strategy is rooted in the recognition that digital transformation is critical to economic modernization, military power and international competitiveness. The initiative seeks to integrate digital technology into all aspects of governance, business and society. The aim is in ensuring that China retains technological sovereignty and reduces dependence on foreign technologies.

Following are the main drivers of the approach are:

The foundational principles of the Digital China strategy guide its implementation across numerous industries. These primarily include the following:


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Supported by a $ 2.7 Trillion budget to be implemented and executed over a quarter of century that would include a Five year Infrastructure campaign (New Type Infrastructure) the Digital China is structured on a “2522” overall framework :-

    The ultimate objective of the Digital China strategy is to establish China as a self-sufficient, innovation-driven digital powerhouse capable of setting global standards in technology, governance and cyber policy. While the final end state is to in the great power competition of the Digital Age. The End State is focussed for both Domestically and Internationally having a separate end state as listed below :-

     The desired end state includes:

    • Taking the lead globally in digital governance, influencing international standards and regulations pertaining to cyberspace and data security.

    • Preserving a strong digital defense infrastructure and reducing cyberthreats to ensure national security.

    The desired end state includes:

    • Expanding China’s digital ecosystem globally through the digital arm of the Belt and Road Initiative is one of the planned end states internationally.
    • Endorsing a digital socialist paradigm that stresses state-led control over technology and the internet and questions Western digital governance.
    • Showcase a Global development model wherein the moot point would be that Socialism being better than Capitalist development Model

    China’s success in implementing its reformative strategies is largely due to its whole-of-nation approach, leveraging government control, private sector cooperation and public participation. The Digital China Strategy is also being implemented in a similar manner; some of its main components are as follows:

    Through Five-Year Plans, the Chinese Communist Party (CCP) provides general guidance and instructions for ensuring strategic coherence.

    The Cyberspace Administration of China (CAC) is one agency of the State that regulates the implementation of digital regulations.

    Local governments are encouraged to work on the experimentation of smart city projects and digital governance strategies.

    The bigger technology companies, such as Huawei, Tencent, Alibaba, and ByteDance, align their national goals along with government support.

    Technologies developed for commercial and defence applications, under the military-civil fusion objectives, are funded by state-backed venture capital funds for startups in strategic information technology sectors.

    STEM Emphasis would produce a host of highly qualified digital workers.

    Entrepreneurship and innovative development are supported by government research grants and scholarships.

    Talent acquisition policies will draw foreign AI and technology specialists into China.

    Collaborations with developing nations to implement Chinese digital infrastructure, including cloud computing and 5G networks.

    Building alternate digital ecosystems striving to resist Western digital hegemony, including its own internet governance models by China.

    Participate in international standard-setting organizations to promote Chinese-developed standards and technologies.

    China’s long-term, comprehensive Digital Strategy seeks to establish the country as a global leader in technology. China’s aggressive infrastructure development, technological independence, and global digital expansion are shaping the future of the global digital landscape. The whole-of-nation approach ensures that government policies, public participation, and corporate innovation are coordinated, making China’s digital goals both strategic and achievable. Geopolitical dynamics, cyber governance, and economic competition will all be significantly impacted by China’s ongoing development and implementation of its Digital China agenda, which is poised to shift the global balance of digital power.

    Pacific Forum International Issues & Insights Vol.23, WP 2 (February 2023). Digital China The strategy and its Geopolitical Implications. Retrieved from https://pacforum.org/wp-content/uploads/2024/01/IssuesandInsights_VOL23_WP2.pdf

    Center for Strategic and International Studies (CSIS). (n.d.). China’s Emerging Cyber Governance System Retrieved from https://www.csis.org/programs/strategic-technologies-program/resources/china-cyber-outlook/chinas-emerging-cyber

    Cyberspace Administration of China (CAC). (2017). China’s Internet Governance and Cybersecurity Law. Retrieved from https://chinaus-icas.org/research/chinas-data-governance-and-cybersecurity-regime/

    Mercator Institute for China Studies (MERICS). (n.d.). Smart governance, cyber sovereignty and tech supremacy. Retrieved from https://merics.org/en/ccp-2021-smart-governance-cyber-sovereignty-and-tech-supremacy/

    Janjeva, A., Baek, S., & Sellars, A. (2024, December). China’s quest for semiconductor self-sufficiency: The impact on UK and Korean industries. Centre for Emerging Technology and Security (CETaS). Retrieved from https://cetas.turing.ac.uk/sites/default/files/2024-12/cetas_briefing_paper_-_chinas_quest_for_semiconductor_self-sufficiency_-_the_impact_on_uk_and_korean_industries.pdf

    Organisation for Economic Co-operation and Development (OECD). (2023). OECD Digital Economy Outlook 2023. OECD Publishing. Retrieved from https://www.oecd.org/en/publications/oecd-digital-economy-outlook_f0b5c251-en.html

    National Development and Reform Commission (NDRC). (2021). The outline of the 14th five-year plan (2021–2025) for national economic and social development and vision 2035 of the People’s Republic of China. Retrieved from https://en.ndrc.gov.cn/policies/202203/P020220315511326748336.pdf

    RAND Corporation. (2022, January). Shaping China’s ambitions. Retrieved from https://www.rand.org/pubs/commentary/2022/01/shaping-chinas-ambitions.html(RAND Corporation)

    State Council of the People’s Republic of China. (2015, May 19). Made in China 2025 plan issued. Retrieved from https://english.www.gov.cn/policies/latest_releases/2015/05/19/content_281475110703534.htm(State Council of China) World Economic Forum. (2024, January). China’s approach to data and AI is changing. Here’s how. Retrieved from https://www.weforum.org/stories/2024/01/chinas-data-and-ai-approach-is-changing-heres-what-that-means/

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