4.-SINO-US-COMPETITION-3
4.-SINO-US-COMPETITION-3
4.-SINO-US-COMPETITION-3
Sino-US Competition
in Global Information
Infrastructure, Critical Regional Studies
Vol 42, Issue 1
Technologies and Its pp.96-129
© 2024 IRS
Implications http//irs.org.pk
P-ISSN: 0254-7988
E-ISSN:2959-5459
Nabila Jaffer∗ Date of Acceptance: 4 April 2024
Published Online: 25 July 2024
Abstract
The competition over technologies is becoming central to the rivalry between
China and the United States (US). The US achieved superpower status as a result
of its unmatched political influence, economic strength, and military
technological leadership. But China has recently made great strides in building its
information infrastructure, which is essential for both the nation's military might
and economic growth. China currently has the second-largest economy in the
world. This paper examines how China is emerging as a competitor to the US in
major critical technologies such as cyberspace, 5G, Artificial Intelligence (AI),
quantum computers, and space. The US is taking preventative actions against
China in order to protect its superiority and both countries are working to
establish independent capabilities in these technologies which have major
implications. Power transition theory and neorealism provide an explanation for
the Sino-US drive for technological superiority and how it is influencing the global
power structure. Techno-nationalism stemming from competition for
semiconductors and microchips, techno-politics through technology-driven
political interests and alliances, economic gains, market control, automation of
weapons, and challenges to governance of these technologies and cyber-security
are some of the implications of this ongoing competition. This article proposes a
global agreement on governance and regulation of these technologies.
Keywords: China, US, strategic competition, global information infrastructure,
critical technologies, semiconductors, cyber security
∗ Ms. Nabila Jaffer is a Research Analyst and leads the China Program at the
Institute of Regional Studies (IRS), Islamabad.
E-mail: nabilajaffer22@gmail.com
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Introduction
In the era of innovations, the development and spread of
cutting-edge information-based technologies in unprecedented ways
has made great power competition more complicated and
consequential. Following the disintegration of the Soviet Union, the
United States gained the status of superpower due to its unmatched
technological leadership, economic might, military supremacy, and
political influence. The US upheld its dominance and safeguarded the
liberal order it had established with its fellow western powers based
on democracy, human rights, freedom of speech, capitalism, and open
trade. To preserve this order, the US also did not hesitate to implement
regime change policies in many places. This also led the US to involve
in various military and armed conflicts. Until China became the
second-largest economy, there was no other country to challenge the
US hegemony.
Following Sino-US diplomatic relations in 1978, the US made
significant investments in China, making them major trading and
business partners in the coming decades. Ever since joining the World
Trade Organization (WTO) and obtaining Foreign Direct Investment
(FDI), China has remained a significant actor and partner in the
promotion of US-led global order. China maintained a pragmatic and
rational approach toward relations with other countries. The primary
reason for the US apprehension about China was rooted in China’s
emergence as the biggest manufacturer in the world in 2010 and
2011,1 which also gave an unchallenged legitimacy to a one-party
governance system of ‘socialism with Chinese characteristics’ under
the leadership of Communist Party of China (CPC).
Initially, the driver for China’s focus on developing its
information infrastructure was its fear of the US regime-change policy
after the 2010–2011 Arab Spring, in which US–led digital platforms
and information campaigns played a crucial part in the movement
against autocratic rulers. In addition to China’s economic boom, there
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The growing trade deficit with China has also been the reason
for the US decoupling with the former. Nevertheless, China’s rapid
success in technologies is central to this measure. As decoupling
would be a slow process, a new strategy of de-risking has been
implemented in which the US curbs China’s access to key strategic
innovation partnerships and investments with China. The US banned
sale and imports of five types of “made in China” communication
equipment from five companies including Huawei and ZTE (a leading
5G company in China) as well as sanctions on the export of microchips
and semiconductors.17 In addition, the US also barred Chinese students
from research and study in the advanced science and technology
research centres and universities.18 Following the recurring US
sanctions, China launched an internal chip industry with state funds
amounting to $40 billion in 2023.19 The US still tops the Global
Innovation Index (GII) in 2022, however, China for the first time in 2023
topped in 24 Science and Technology (S&T) clusters among the top
100 surpassing the US with 21 clusters.20 Given China’s population size,
industrial capacity, R&D spending and successful strategic policies, it
has much larger potential to excel in critical technologies.
Cyberspace
Cyberspace as a ‘network of interaction between human users
and information systems’ is an important medium to transmit and
store data through signalling between processors and devices.29
Cyberspace is increasingly becoming the fifth domain of warfare
between rivals after the four domains of traditional warfare such as
land, air, maritime, and space.30 This domain influences policy areas
including elections, trade, defence, and transparency when it comes to
the bilateral relationship between the US and China.
With rapid expansion in the digital industry, the world is
moving towards the next generation of the internet. Currently, IPv4
internet is prevailing and innovation is taking place to move to
another internet protocol which is IPv6, most likely in the next decade.
The Chinese and the US military have already expressed the “desire to
move to IPv6 to support the modernisation of their large networks.”31
The Mandiant Report exposed China’s extensive economic espionage
programme, and Edward Snowden revealed the US PRISM Project in
2013, making cyber-enabled espionage activities the next big
problem.32 It is concerning that these operations result in hundreds of
billions of dollars in annual costs for the US due to cyber theft. Despite
facing new challenges, the US is still leading the world in terms of
offensive as well as defensive cyber capabilities.33 In order to safeguard
its interests and raise its capabilities to the level of the US, China is
building its own independent information infrastructure. In 2014,
China launched the De-IOE programme, to uninstall software made by
American suppliers such as IBM, Oracle, and EMC from its e-commerce
companies and banks.
5G Technology
High-speed Fifth Generation (5G) wireless internet is
revolutionising mobile telecommunication and real-time data transfer
abilities. Coupling with other reinforcing technologies, 5G is emerging
as a driver of the global infosphere. In the near future, around 6 billion
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China will not only be able to control the networks on which the data
is transported, but its 5G will also enable it to access that critical data.41
This is the domain in which these technologies have interconnected
abilities which further increases China’s strategic and economic
leverages.
Quantum Computers
Quantum computers are advanced forms of computers based
on quantum physics with larger data storage capacity and greater
computational power than classical computers.42 Since quantum
computers can solve highly complex computations that cannot be
solved by the world’s supercomputers, this invention is another critical
technology. The breakthrough in the quantum computer was first
announced by scientists at Google in the US in 2019.43 They developed
the Sycamore computer which solved a numeric computation in 200
seconds that would have taken 10,000 years to solve by the world’s
most powerful supercomputer. After the invention by Google, the
International Business Machines Corporation (IBM) also announced a
classical bit-based technology that could solve the same problem in
2.5 days. Soon after that a team of Chinese physicists at the University
of Science and Technology at Hefei also announced a photon
computer with the ability to solve the mathematical computation
called the ‘boson sampling problem’ in 200 seconds, an operation that
would have taken a classical supercomputer 2.5 billion years to solve.44
In August 2022, the world’s largest search engine, Baidu Inc. of
China, announced the development of a 36-qubit quantum chip in
addition to its first quantum computer with a 10-qubit processor,
named Qianshi. Joining the global competition, China aspired to
launch this technology to outside users in real-world applications.
Similarly, the US tech-giant IBM and Alphabet Inc’s Google also plan to
launch more advanced forms of quantum computers by 2030.45 In
2023, Chinese scientists developed Jiuzhang 3.0 quantum computer
SINO-US COMPETITION 109
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countries that are politically and ideologically at odds with China and
Russia.
Implications
Rising Techno-Nationalism and
the Race for Semiconductors
The rapid advancement in technology and its vitality in
increasing national power are giving rise to techno-nationalism. The
way the scientific superiority of a nation, especially in the hi-tech
domain, is linked to its prosperity, and national security, can be termed
‘techno-nationalism’.59 As a response to intensifying technological
competition and keeping in view the technological leadership for
national security, many countries around the world announced
budgets and set goals to achieve national capabilities instead of
dependence on other powers. The EU and the US set targets for
securing maximum production of semiconductors by 2030.60 In the
spirit of national capacity and in response to the US curbs on exports
of microchips, in 2023 alone China imported microchip production
tools worth $40 billion to boost its indigenous production.61
Techno-nationalism is more prominent between China and the
US. It is not only the strategic rivalry; the ideological differences are
fostering ‘competitive techno-nationalist policies’ between them.62
Both countries have varied standards for the regulation and
governance of these technologies. Techno-nationalism shows a
normative divide. Democratic and state-centred governments can
employ technologically-enabled methods to empower drastically
diverse norms on data privacy, censorship, surveillance, digital
currency, transparency, and intellectual property. Internally, China
maintains its independent information and communication system. Its
technology diffusion to the world can give it leverage for controlling
information outside of its country. This has been considered a threat
by the US. This is one of the reasons for the US to prevent China’s
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Conclusion
The competition among great powers is traditionally analysed
in the domains of diplomatic, military, and hard power. However,
global information infrastructure is a more comprehensive domain for
great power competition in the new era. This study found that critical
technologies are vital for acquisition of power because of their
interlinked, interconnected abilities, wider applications and strategic
use of information. The emerging technologies discussed in this paper
are related to the rapid advancement in ICT. The innovations in the
listed technologies are bringing changes in the global economy,
politics, and security in unprecedented ways. The strategic use of
information complemented by advanced technologies can strengthen
the comparative advantage and relative gains of one country while
weakening the other country. The struggle for oil and advanced
nuclear weapons was central to power competition between powerful
countries which is still true. Now the biggest domain for achieving
greater power against a rival lies in increasing potential in critical
technologies. These technologies can substantially shift the military
and economic balance.
Since China announced its ‘Made in China 2025’ strategy in
2015 and increased R&D, it has achieved much ground to close the
gap with US in critical technologies. Keeping in view, China’s growing
potential in AI, quantum computers, space, cyberspace and 5G as
studied in this paper, qualifies China as a global competitor to the US.
It was technology and innovation that gave the US superpower status.
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1
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SINO-US COMPETITION 123
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20
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21
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22
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23
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24
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27
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29
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30
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31
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32
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SINO-US COMPETITION 125
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33
Joseph Marks, “The Cybersecurity 202: The United States is still
number one in cyber capabilities,” The Washington Post, 28 June
2021, https://www.washingtonpost.com/politics/2021/06/28/
cybersecurity-202-united-states-is-still-number-one-cyber-
capabilities/.
34
William Schneider, “China 5G, and Dominance of the Global
“Infosphere,” Briefing Memo China, Hudson Institute, September
2019.
35
Ibid.
36
Arjun Kharpal, “Pathetic performance has left U.S. ‘well behind’
China in 5G race, ex-Google CEO Eric Schmidt says,” CNBC, 17
February 2022, https://www.cnbc.com/2022/02/17/us-well-
behind-china-in-5g-race-ex-google-ceo-eric-schmidt-says.html.
37
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38
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39
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40
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41
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telecom-strategy-needs-to-be-countered-in-space/.
42
Donna Lu, “What is a quantum computer?,”
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computer/.
43
Sonia Fernandez, “Achieving Quantum Supremacy,” 23 October
2019, https://www.news.ucsb.edu/2019/019682/achieving-
quantum-supremacy.
44
Alex Capri, “Quantum computing: A new frontier in techno-
nationalism,” Hinrich Foundation, August 2021.
45
Ibid.
126 REGIONAL STUDIES
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46
“China improves 5G infrastructure to upgrade industries,” China
Daily, 23 October 2023, https://govt.chinadaily.com.cn/s/
202310/23/WS6535d82e498ed2d7b7e9e29e/china-improves-5g-
infrastructure-to-upgrade-industries.html.
47
Matthew Sparkes, “Quantum computers can break major
encryption method, researchers claim,” New Scientist, 5 January
2023, https://www.newscientist.com/article/2353376-quantum-
computers-can-break-major-encryption-method-researchers-
claim/.
48
Alex Capri, “Quantum computing: A new frontier in techno-
nationalism,” Hinrich Foundation, August 2021.
49
Darrell M. West and John R. Allen, “How artificial intelligence is
transforming the world,” Brookings Institution, 24 April 2018,
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50
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51
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52
Taylor Hatmaker, “White House announces $1B investment for AI
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53
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54
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55
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SINO-US COMPETITION 127
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56
Che Pan, “OpenAI’s ChatGPT took the AI world by storm a year ago
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57
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23/.
58
James Vincent, “Putin says the nation that leads in AI ‘will be the
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59
Alex Capri, “Techno-Nationalism: What is it and how will it change
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60
Akinori Kahata, “Beyond U.S.-China Technology Competition,” CSIS,
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61
Charlotte Trueman, “China imported $40bn worth of chip making
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62
Alex Capri, “Techno-Nationalism: What Is It And How Will It Change
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63
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64
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65
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66
Sheila Chiang, “Malaysia emerges as a hotspot for semiconductor
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128 REGIONAL STUDIES
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67
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68
Amir Guluzade, “The role of China's state-owned companies
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69
Camino Kavanagh, “New Tech, New Threats, and New Governance
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70
William Schneider, “China 5G, and Dominance of the Global
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71
Joseph J.Kearney and Carlos A.Perez-Delgado, “Vulnerability of
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72
Ibid.
73
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74
Ibid.
75
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76
Juan Pedro Tomás, “China to end 2023 with 5G penetration of
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penetration-90-china-mobile-says.
SINO-US COMPETITION 129
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77
Amit M. Joshi, “How AI gives Taobao’s one billion customers the
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personal-touch/.
78
United Nations, “The Militarization of Artificial Intelligence,”
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79
John Keller, “Pentagon to spend $874 million on artificial
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80
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81
Michael C. Horowitz and Lauren Kahn, “DoD's 2021 China Military
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82
Dan Milmo, “TechScape: how China became an AI superpower
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states#:~:text=In%20May%202017%20AlphaGo%20defeated,all%
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83
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