China’s Digital Silk Road in the Age of the Digital Economy: Political Analysis

Abstract

The digital economy is an increasingly important driver of the global economic growth. In recent years, regional digital cooperation has received a new tangible impetus with the launch of China’s “Belt and Road” initiative (BRI). The Digital Silk Road (DSR), as the BRI’s technological component, is becoming a digital bridge to promote a new type of globalization. The DSR has achieved extraordinary progress recently. It has strengthened regional cooperation in digital economy, mainly in Asia and Africa, through such channels as cross-border e-commerce and mobile financial tools, while it also reflects the global technological transformation under the Fourth Industrial Revolution in key sectors such as big data, digital currency, cloud computing and Internet of Things (IoT). Thus, the DSR provides the optimal platform for new formats and technologies, such as digital trade and digital infrastructure, which have developed rapidly in recent times. However, most countries participating in “Belt and Road” initiative are still at an early stage of digital transformation; the potential of the huge digital growth has yet to be released. Furthermore, the digital lag has become a major problem limiting economic development. This article focuses on the digital economy as a new economic model, its potential and challenges, analyzing the possible implications beyond China’s DSR at both national and international levels, particularly, the role of DSR within the context of the Sino-US strategic rivalry. The methodological basis of the study covers a wide range of general scientific methods of political analysis, such as analytical, empirical, chronological, comparative, situational, narrative and descriptive. The author argues that the DSR provides a great opportunity for active multinational engagement in building a regional platform for the development of digital economy and a legal framework for digital standards and governance rules. China should focus on key sectors of the DSR, especially cross-border e-commerce, mobile financial tools, digital yuan, cloud computing and other cutting-edge components to make the DSR a more decisive initiative in global digital transformation. In promoting its own rules of digital governance, China has to be prepared to overcome difficulties and challenges that are partly the result of great power competition. The conclusion contains the results of the study and the strategic policy recommendations beyond the DSR.