FROM STANDARDS TAKER TO STANDARDS MAKER: CHINA’S CONDUCT OF ECONOMIC STATECRAFT THROUGH THE DIGITAL SILK ROAD (DSR)

Abstract

With its technological rise, China has been exhibiting growing ambitions to emerge as a leader in setting international technical standards, especially for emerging technologies. In particular, the Digital Silk Road (DSR) has been a key component of China’s international standards setting strategy. Empirical evidence has demonstrated that Chinese private firms rather than state-owned companies (SOEs) are increasingly the main drivers shaping and influencing technical standards through DSR digital infrastructure projects. Since private firms as commercial actors with commercial interests do not always align with the state’s strategic interests, this paper seeks to investigate how China utilises private firms to advance its grand strategy of becoming a global technical standards setter through the DSR. This study draws upon the economic statecraft theory to identify the convergence in private firms’ commercial interests and the state’s strategic interests in technical standards setting through the DSR. The selected private Chinese firms participating in AI and 5G standards setting activities are mapped to DSR Smart Cities and DSR 5G network infrastructure projects. Using DSR Smart Cities and DSR 5G network infrastructure projects as case studies, this study then examines how private Chinese firms commercially deploy Chinese-made standards through the DSR. This paper finds that the convergence in private Chinese firms’ commercial interests and the state’s strategic interests in 5G and AI technical standards setting translates into firms’ participation in DSR projects. The export of technologies into DSR Smart Cities and 5G network infrastructure projects enable private firms to commercially deploy Chinese-made AI and 5G standards in a network of recipient countries. This promotes Chinese-made standards as the de facto standard across DSR recipient countries, further positioning China as an emerging leader in setting international technical standards