China vs. USA: Asia at the Heart of the Global Technology Race

As China and the USA vie for technological dominance, Asia emerges as the battleground. Explore how digital infrastructure and cybersecurity shape this high-stakes rivalry.

The technological rivalry between China and the United States has escalated into a race that extends beyond borders, drawing Asia into a complex digital battleground. From the deployment of data centers and submarine cables to fierce debates over cybersecurity, Asia has become the epicenter of this struggle for control. At the heart of the tension lies a deep-seated mistrust and a strategic push by both superpowers to shape the region's digital infrastructure—a competition that could reshape the global tech landscape.

Asia’s Digital Battleground: The Frontline of Sino-American Tech Competition

The competition between the U.S. and China over digital dominance has become a defining issue of modern geopolitics. The Wall Street Journal recently reported that Chinese hackers, dubbed "Salt Typhoon," allegedly breached U.S. telecommunications networks to gather intelligence on American wiretapping efforts. This intrusion underscores the deep mistrust between the two superpowers, fueling a hostile policy where each avoids reliance on the other’s technology. The U.S. has barred Huawei, China’s telecom giant, from operating on American soil, while China discourages using Silicon Valley servers and cloud services.

Yet, across much of the world, particularly in Asia, American and Chinese infrastructure coexists, competing for both influence and market share. From data centers to submarine cables, these digital pathways are vital to the internet's global structure. In Asia, the stakes are especially high as Chinese tech firms gain a strong foothold, challenging American influence in the region.

China’s Digital Silk Road Strategy: Expanding Infrastructure Across Asia

China’s expanding influence in Asia is no coincidence. The Digital Silk Road Strategy, spearheaded by President Xi Jinping, envisions a future where China dominates regional digital infrastructure. Chinese tech firms such as Alibaba and Huawei have made significant inroads into the Asian market; in fact, Huawei alone has built around 18% of all new submarine cables in recent years. Alibaba’s cloud services are present in nine Asian countries, and Huawei has established multiple mobile networks across the region.

The success of these Chinese companies is attributed not only to innovation and affordability but also to financial backing from the Chinese government. Chinese cloud services, for instance, reportedly cost up to 40% less than their American counterparts. As these firms expand, they enable China to promote its concept of “data sovereignty”—a vision where nations control their data, with information stored locally under state ownership.

A Digital Divide: Risks and the Push for Data Sovereignty

However, China’s vision for Asia’s digital future comes with potential risks. A digital infrastructure dominated by Chinese firms raises concerns over security and privacy, particularly as instances of hacking and eavesdropping become more frequent. Reports indicate that Chinese hackers have targeted intelligence operations in the Philippines and attacked Malaysia’s Kasawari gas field, reflecting a broader threat to regional stability.

As countries weigh the advantages of Chinese digital infrastructure against security concerns, some, like India, are reconsidering their reliance on Chinese tech. Still, other nations, including Pakistan and Cambodia, remain heavily invested in China’s tech sector, placing their digital sovereignty in the hands of Beijing.

America’s Strategic Countermeasures: Securing Allies and Digital Sovereignty

To counter China’s influence, the United States has prioritized strengthening its alliances in Asia and bolstering cybersecurity partnerships. American officials recognize that winning this technology race requires a multi-pronged approach, beginning with encouraging treaty allies like Thailand and the Philippines to reduce their dependence on Chinese tech. Despite tightening military ties with the U.S., the Philippines remains digitally vulnerable to potential Chinese interference.

The U.S. has also proposed creating a regional coalition focused on cybersecurity and artificial intelligence, hoping to draw nations into a unified front against cyber threats. Reviving the Trans-Pacific Partnership, a trade agreement abandoned in 2017, could provide a framework for digital cooperation, although current protectionist policies complicate this goal. However, closer agreements with select Asian nations, granting access to American technology in exchange for cybersecurity commitments, may still be feasible.

 A High-Stakes Race with Global Consequences

As China and the United States vie for technological supremacy, Asia finds itself at the heart of a new frontier in digital infrastructure. With Chinese and American interests clashing across data centers, cloud networks, and cybersecurity strategies, the region’s tech landscape remains under constant tension. Whether Asia ultimately aligns with the U.S., embraces China’s data sovereignty model, or forges its path, the outcome of this race will have far-reaching implications for global tech governance and the digital future.