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IDSA Occasional Paper No. 54 Analysing China's Digital And Space Belt And Road Initiative Ajey Lele and Kritika Roy

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Page 1: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

IDSA Occasional Paper No 54

Analysing Chinas

Digital And

Space Belt And

Road Initiative

Ajey Lele and Kritika Roy

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 1

AJEY LELE AND KRITIKA ROY

IDSA OCCASIONAL PAPER NO 55

ANALYSING CHINArsquoSDIGITAL AND SPACE BELT

AND ROAD INITIATIVE

2 | AJEY LELE AND KRITIKA ROY

Institute for Defence Studies and Analyses New Delhi

All rights reserved No part of this publication may be reproduced sorted in aretrieval system or transmitted in any form or by any means electronic mechanicalphoto-copying recording or otherwise without the prior permission of the Institutefor Defence Studies and Analyses (IDSA)

ISBN 978-93-82169-90-1

First Published November 2019

Price

Published by Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram MargDelhi Cantt New Delhi - 110 010Tel (91-11) 2671-7983Fax(91-11) 2615 4191E-mail contactusidsainWebsite httpwwwidsain

Cover ampLayout by Vaijayanti Patankar

Printed at KW Publishers Pvt Ltd

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 3

CONTENTS

SECTION I 5

11 BACKGROUND 6

12 PURPOSE OF THE BRI 8

SECTION II 14

21 DIGITAL SILK ROAD 14

SECTION III 26

31 SPACE SILK ROAD 26

SECTION IV 41

41 ASSESSING THE DIGITAL AND SPACE BRI 41

SECTION V 52

51 LEARNING AND IMPLICATIONS FOR INDIA 52

52 CONCLUSION 55

4 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5

From 25 to 27 April 2019 Beijing welcomed leaders from around 37countries and delegates from over 150 countries at the second Belt andRoad forum1 based on the theme ldquoShaping a Brighter Shared FuturerdquoPresident Xi Jinpingrsquos speech during the event stressed the fact that althoughthe Belt and Road initiative (BRI) has been launched by China itsldquoopportunities and outcomesrdquo could be reaped by the world Much hashappened since the first inaugural Forum in 2017 including the BRI beingconsecrated into the constitution of the Chinese Communist Party andPresident Xi Jinping removing Presidential term limits Both moves givemore validation to the actualisation of the BRI The second BRI forumfocused mainly on refuting the international criticism of the initiativeespecially against Chinarsquos alleged debt trap diplomacy2 In lieu of the previouscondemnation the ldquoDebt Sustainability Frameworkrdquo was announced atthe forum besides the ldquoBeijing Initiative for the Clean Silk Roadrdquo and theldquoGreen Silk Road Envoys Programmerdquo for the participating countriesFurthermore the forum also emphasized the steps being taken on zerotolerance on corruption and the pursuit of high quality development Inaddition to the more traditional areas of economic connection it was alsosaid that the program would ldquoencourage the development of digitalinfrastructurerdquo

China is well on the way to being a global leader in key emerging anddigital technologies Beyond its domestic market international statisticsclearly point to Chinarsquos leading role in exporting digital goods and services

SECTION I

1 The Belt and Road Forum for International Cooperation (BRF) is a high-leveland comprehensive multilateral platform for the Belt and Road cooperation

2 Chinarsquos Debt Trap is a most debated concern that bounds the recipient countriesensnared in a lofty debt that leaves them vulnerable to Chinarsquos influence

6 | AJEY LELE AND KRITIKA ROY

Digital technology has also given a push to Chinarsquos economy Chinesecompanies are competing successfully worldwide in ICT products andservices and are at the forefront of shaping international standards foremerging technologies In fact the Digital Silk Road project was promotedduring the ldquoBelt and Road CEO Conferencerdquo This conference was thefirst of its kind and had the representation from global Fortune 500companies and other Chinese firms as an indication of their interest Thoughnot much light was shed on the space medium of the BRI nonethelessone cannot be ignorant of the developments on that front This papercomplements the existing literature on BRI while highlighting the need toinvolve the digital and space sector as that allows China to have greaterflexibility to expand both business and influence over the regions of itsinterest Furthermore this paper underscores the likely implications in theforeseeable future of Chinarsquos Digital and Space expansion in economicgeopolitical technological security and geostrategic dimensions The paperalso explores the likely implications and learnings for India The paperconcludes by recommending a balanced approach that allows mutualbenefit and growth for all the BRI as well as non-BRI states

11 BACKGROUND

The BRI is the reincarnation of the ancient silk route which was a traderoute connecting China to Europe through land and sea routes The ancientsilk route derived its name from silk mdash the major product that was tradedacross the route Trade via the silk route also included a huge network ofstrategically located trading posts markets and thoroughfares designedto streamline the transport exchange distribution and storage of silkother and goods3 Besides trade this route also opened the gate for theexchange of philosophy religious beliefs science language and culture

3 ldquoAbout the Silk Roadrdquo United Nations Educational Scientific and CulturalOrganization see httpsenunescoorgsilkroadabout-silk-road accessed 15March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 7

The idea of the new silk route was first floated by President Xi Jinpingduring a visit to Kazakhstan in 20134 Following the announcement anaction plan was released in 2015 by the Ministry of Foreign Affairs andthe National Development and Reform Commission Plan laid out by theMinistry of Commerce gave more clarity to the proposed idea5 This planemphasized on the mission as well as the vision of the BRI to develop anefficient and secure network of land sea and air passages on the basis ofldquomutual trust equality and mutual benefits openness inclusiveness andmutual learning and win-win cooperationrdquo6

Additionally it is important to note that the notion of connectivity hasundergone a tremendous change in the twenty first century It is no longerlimited to roads rails and sea rather it is the virtual connectivity thatfacilitates the functioning of all three in real time In the era of the IndustrialRevolution of 40 China also envisaged the integration of markets andconnecting countries along its Belt and Road with a network of next-generation digital infrastructure and satellite coverage Against this backdropan Information and Space Silk Road was also stated as one of the subgoals of the BRI that emphasized the agenda of strengthening digitalinfrastructure developing common technology standards and deepeningspace cooperation7

4 Kishan S Rana ldquoChinarsquos Belt and Road Initiative Implications Prospects andConsequences Impact on India and its China Diplomacyrdquo Institute of ChineseStudies September 2017 see httpswwwicsinorguploads2017100648af1a73bb7c5ce9ae949b0f0ac48112pdf accessed 15 March 2019

5 Manoj Joshi ldquoThe Belt and Road Initiative aka One Belt One Road SchemerdquoORF May 2018 see httpswwworfonlineorgwp-contentuploads201801The-Belt-Road-Initiative-pdf accessed 17 March 2019

6 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform CommissionMinistry of Foreign Affairs and Ministry of Commerce of the Peoplersquos Republicof China March 28 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 18 March 2019

7 Chan Jia Hao ldquoChinarsquos Digital Silk Road A Game Changer for Asian EconomiesrdquoThe Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 19 March 2019

8 | AJEY LELE AND KRITIKA ROY

The modern equivalent of the ancient silk route called the lsquoOne Belt OneRoadrsquo (OBOR) encompassed the Silk Road Economic Belt and the Twenty-first Century Maritime Silk Road This English translation of Chinese Silkroad mdash ldquoOBORrdquo mdash was later changed to Belt and Road Initiative (BRI)as the former had attracted several negative interpretations and manyofficials also felt that the perception of a single road as a limited offercould drive the regional partners into competition mode and thereforethe stressing of the numeral ldquoonerdquo had to be avoided8 Moreover theterm ldquoBelt and Roadrdquo would better reflect the projectrsquos numerous clusternetworks and sound more like an inclusive initiative rather than a politicalstrategy9 Even the motive of establishing the digital and space Silk Roadresonates the same factor of inclusive growth and prosperity for allparticipating countries

12 PURPOSE OF THE BRI

Chinarsquos BRI program finds its origin in a number of policyrecommendations emanating from the various ministries of China Thesepolicy suggestions were regarding issues like promoting economiccooperation initiatives the large scale outpouring of Chinarsquos capital reservesso as to stimulate economic demand overseas to mitigate Chinarsquos structuralovercapacity problems and to resolve the issue of plummeting demand10

8 Una Aleksandra and Berzina Cerenkova ldquoBRI Instead of OBOR mdash ChinaEdits the English Name of its Most Ambitious International Projectrdquo LatvijasArpolitikas Instituts July 28 2016 see httpwwwlailvviedoklibri-instead-of-obor-china-edits-the-english-name-of-its-most-ambitious-international-project-532 accessed 20 March 2019

9 Angela Stanzel ldquoChinarsquos Belt and Road new name same doubtsrdquo EuropeanCouncil on Foreign Relations May 19 2017 see httpswwwecfreuarticlecommentary_chinas_belt_and_road_new_name_same_doubts accessed 20March 2019

10 Xu Shanda ldquoChinese Marshall Plan to be supported by 500 billion in foreignexchange reservesrdquo Daily Economic News August 2009 see httpfinancesinacomcnchinahgjj2009080607566578273shtml accessed 22March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 9

These proposals soon caught the attention of the political leadership andafter the 18th CPC National Congress were embraced and incorporatedinto a broader unified initiative called the BRI11

Chinese officials saw the BRI as a means of addressing both the domesticand foreign policy imperatives of China12 When President Xi Jinping tookover power on 14 March 2013 he had evoked his doctrine of the ldquoChinesedreamrdquo and the BRI is in all respects aimed at ldquoorganically linking theChinese dream to the global dreamrdquo Many scholars also see the BRI asthe Chinese Marshall Plan to ldquopromote growth in its poorer but vulnerablewestern regions as well as adjacent and strategic Central Asia or as apivot towards Eurasia in response to Americarsquos rebalance to Asiastrategyrdquo13 The BRIrsquos ambitions have left much room for multiplespeculations However the Chinese government has often discouragedthese descriptions of the BRI and have emphasized voluntary participationand inclusive growth

Nevertheless there are a few key rationales of the BRI that cannot beoverlooked

121 Going Out 20 Step towards Globalisation Integrationand Development

The BRI is commensurate with Chinarsquos out going policy to facilitate itsglobal rise in the international system it also gives Chinese overseas foreigndirect investment a more strategic direction and impetus Initially Chinarsquosrelationships with BRI countries were composed of individual bilateralrelationships but with the introduction of the BRI project theserelationships have come to be positioned in multilateral international relations

11 Richard Ghiasy and Jiayi Zhou ldquoThe Silk Road Economic Belt ConsideringSecurity Implications and EU- China cooperation prospectsrdquo SIPRI February

2017 In Chinese the initiative is called ldquoNamp^Niuml rdquo (literally lsquoone belt one roadrsquo)The English name was changed from One Belt One Road (or OBOR) to thenow widely accepted BRI around 2017

12 Ibid13 See note 3

10 | AJEY LELE AND KRITIKA ROY

within the BRI framework14 The BRI complies with the policyrsquos aim ofintegrating China more deeply into the world economic system while alsopositing China as a leader in that system

President Xi has claimed that 57 countries became active participants inthe BRI with 30 of them formally signing BRI cooperation deals by mid-201615 The country also claims to have established 75 overseas economiccooperation zones in 35 BRI countries16 The ldquoconnectivityrdquo offered bythe BRI is complemented by alternative financial and governance institutionsnamely the New Development Bank Asian Infrastructure InvestmentBank and the Shanghai Cooperation Organization These institutions areenvisaged to reformulate the world to Chinarsquos advantage These new unitsof the international system respond to the needs of urbanisation and reflectthe geopolitical economic and ideological preferences of their founder17

as well as the concept of a ldquoreturn to an Asia-centric order wherein Chinais claiming its rightful place in the current international dynamicsrdquo18 Thoughthere is no denying the fact that the BRI is an ambitious geostrategic initiativeone can nevertheless also see the elements of a new approach to

14 Hideo Ohashi ldquoThe Belt and Road Initiative (BRI) in the context of Chinarsquosopening-up policyrdquo Journal of Contemporary East Asia Studies 2018 see httpswwwtandfonlinecomdoifull1010802476102820181564615 accessed 22March 2019

15 ldquoXi Jinping Highlights Positive Results of lsquoBelt and Roadrsquo Construction inVarious Aspects When Delivering a Speech at Legislative Chamber of the SupremeAssembly of Uzbekistanrdquo Ministry of Foreign Affairs of the Peoplersquos Republicof China June 22 2016 see httpswwwfmprcgovcncecgmbengzgywt1375058htm accessed 24 September 2019

16 Lu Hui ldquoChinarsquos Outbound Direct Investment Surges in Jan-Aprilrdquo XinhuaMay 16 2016 see httpwwwxinhuanetcomenglish2016- 0516c_135363299htm accessed 24 September 2019

17 Hal Brands ldquoChinarsquos Master Plan A Worldwide Web of Institutions-Beijing isbuilding an Interlocking Series of Security Trade and Educational bodies toRival the Westrdquo Bloomberg Opinion 12 June 2018

18 Yu-Wen Chen and Obert Hodzi ldquoThe Great Rejuvenation Chinarsquos Search for aNew lsquoGlobal Orderrsquordquo Institute for Security and Development Policy 2017Sweden

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 2: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 1

AJEY LELE AND KRITIKA ROY

IDSA OCCASIONAL PAPER NO 55

ANALYSING CHINArsquoSDIGITAL AND SPACE BELT

AND ROAD INITIATIVE

2 | AJEY LELE AND KRITIKA ROY

Institute for Defence Studies and Analyses New Delhi

All rights reserved No part of this publication may be reproduced sorted in aretrieval system or transmitted in any form or by any means electronic mechanicalphoto-copying recording or otherwise without the prior permission of the Institutefor Defence Studies and Analyses (IDSA)

ISBN 978-93-82169-90-1

First Published November 2019

Price

Published by Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram MargDelhi Cantt New Delhi - 110 010Tel (91-11) 2671-7983Fax(91-11) 2615 4191E-mail contactusidsainWebsite httpwwwidsain

Cover ampLayout by Vaijayanti Patankar

Printed at KW Publishers Pvt Ltd

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 3

CONTENTS

SECTION I 5

11 BACKGROUND 6

12 PURPOSE OF THE BRI 8

SECTION II 14

21 DIGITAL SILK ROAD 14

SECTION III 26

31 SPACE SILK ROAD 26

SECTION IV 41

41 ASSESSING THE DIGITAL AND SPACE BRI 41

SECTION V 52

51 LEARNING AND IMPLICATIONS FOR INDIA 52

52 CONCLUSION 55

4 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5

From 25 to 27 April 2019 Beijing welcomed leaders from around 37countries and delegates from over 150 countries at the second Belt andRoad forum1 based on the theme ldquoShaping a Brighter Shared FuturerdquoPresident Xi Jinpingrsquos speech during the event stressed the fact that althoughthe Belt and Road initiative (BRI) has been launched by China itsldquoopportunities and outcomesrdquo could be reaped by the world Much hashappened since the first inaugural Forum in 2017 including the BRI beingconsecrated into the constitution of the Chinese Communist Party andPresident Xi Jinping removing Presidential term limits Both moves givemore validation to the actualisation of the BRI The second BRI forumfocused mainly on refuting the international criticism of the initiativeespecially against Chinarsquos alleged debt trap diplomacy2 In lieu of the previouscondemnation the ldquoDebt Sustainability Frameworkrdquo was announced atthe forum besides the ldquoBeijing Initiative for the Clean Silk Roadrdquo and theldquoGreen Silk Road Envoys Programmerdquo for the participating countriesFurthermore the forum also emphasized the steps being taken on zerotolerance on corruption and the pursuit of high quality development Inaddition to the more traditional areas of economic connection it was alsosaid that the program would ldquoencourage the development of digitalinfrastructurerdquo

China is well on the way to being a global leader in key emerging anddigital technologies Beyond its domestic market international statisticsclearly point to Chinarsquos leading role in exporting digital goods and services

SECTION I

1 The Belt and Road Forum for International Cooperation (BRF) is a high-leveland comprehensive multilateral platform for the Belt and Road cooperation

2 Chinarsquos Debt Trap is a most debated concern that bounds the recipient countriesensnared in a lofty debt that leaves them vulnerable to Chinarsquos influence

6 | AJEY LELE AND KRITIKA ROY

Digital technology has also given a push to Chinarsquos economy Chinesecompanies are competing successfully worldwide in ICT products andservices and are at the forefront of shaping international standards foremerging technologies In fact the Digital Silk Road project was promotedduring the ldquoBelt and Road CEO Conferencerdquo This conference was thefirst of its kind and had the representation from global Fortune 500companies and other Chinese firms as an indication of their interest Thoughnot much light was shed on the space medium of the BRI nonethelessone cannot be ignorant of the developments on that front This papercomplements the existing literature on BRI while highlighting the need toinvolve the digital and space sector as that allows China to have greaterflexibility to expand both business and influence over the regions of itsinterest Furthermore this paper underscores the likely implications in theforeseeable future of Chinarsquos Digital and Space expansion in economicgeopolitical technological security and geostrategic dimensions The paperalso explores the likely implications and learnings for India The paperconcludes by recommending a balanced approach that allows mutualbenefit and growth for all the BRI as well as non-BRI states

11 BACKGROUND

The BRI is the reincarnation of the ancient silk route which was a traderoute connecting China to Europe through land and sea routes The ancientsilk route derived its name from silk mdash the major product that was tradedacross the route Trade via the silk route also included a huge network ofstrategically located trading posts markets and thoroughfares designedto streamline the transport exchange distribution and storage of silkother and goods3 Besides trade this route also opened the gate for theexchange of philosophy religious beliefs science language and culture

3 ldquoAbout the Silk Roadrdquo United Nations Educational Scientific and CulturalOrganization see httpsenunescoorgsilkroadabout-silk-road accessed 15March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 7

The idea of the new silk route was first floated by President Xi Jinpingduring a visit to Kazakhstan in 20134 Following the announcement anaction plan was released in 2015 by the Ministry of Foreign Affairs andthe National Development and Reform Commission Plan laid out by theMinistry of Commerce gave more clarity to the proposed idea5 This planemphasized on the mission as well as the vision of the BRI to develop anefficient and secure network of land sea and air passages on the basis ofldquomutual trust equality and mutual benefits openness inclusiveness andmutual learning and win-win cooperationrdquo6

Additionally it is important to note that the notion of connectivity hasundergone a tremendous change in the twenty first century It is no longerlimited to roads rails and sea rather it is the virtual connectivity thatfacilitates the functioning of all three in real time In the era of the IndustrialRevolution of 40 China also envisaged the integration of markets andconnecting countries along its Belt and Road with a network of next-generation digital infrastructure and satellite coverage Against this backdropan Information and Space Silk Road was also stated as one of the subgoals of the BRI that emphasized the agenda of strengthening digitalinfrastructure developing common technology standards and deepeningspace cooperation7

4 Kishan S Rana ldquoChinarsquos Belt and Road Initiative Implications Prospects andConsequences Impact on India and its China Diplomacyrdquo Institute of ChineseStudies September 2017 see httpswwwicsinorguploads2017100648af1a73bb7c5ce9ae949b0f0ac48112pdf accessed 15 March 2019

5 Manoj Joshi ldquoThe Belt and Road Initiative aka One Belt One Road SchemerdquoORF May 2018 see httpswwworfonlineorgwp-contentuploads201801The-Belt-Road-Initiative-pdf accessed 17 March 2019

6 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform CommissionMinistry of Foreign Affairs and Ministry of Commerce of the Peoplersquos Republicof China March 28 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 18 March 2019

7 Chan Jia Hao ldquoChinarsquos Digital Silk Road A Game Changer for Asian EconomiesrdquoThe Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 19 March 2019

8 | AJEY LELE AND KRITIKA ROY

The modern equivalent of the ancient silk route called the lsquoOne Belt OneRoadrsquo (OBOR) encompassed the Silk Road Economic Belt and the Twenty-first Century Maritime Silk Road This English translation of Chinese Silkroad mdash ldquoOBORrdquo mdash was later changed to Belt and Road Initiative (BRI)as the former had attracted several negative interpretations and manyofficials also felt that the perception of a single road as a limited offercould drive the regional partners into competition mode and thereforethe stressing of the numeral ldquoonerdquo had to be avoided8 Moreover theterm ldquoBelt and Roadrdquo would better reflect the projectrsquos numerous clusternetworks and sound more like an inclusive initiative rather than a politicalstrategy9 Even the motive of establishing the digital and space Silk Roadresonates the same factor of inclusive growth and prosperity for allparticipating countries

12 PURPOSE OF THE BRI

Chinarsquos BRI program finds its origin in a number of policyrecommendations emanating from the various ministries of China Thesepolicy suggestions were regarding issues like promoting economiccooperation initiatives the large scale outpouring of Chinarsquos capital reservesso as to stimulate economic demand overseas to mitigate Chinarsquos structuralovercapacity problems and to resolve the issue of plummeting demand10

8 Una Aleksandra and Berzina Cerenkova ldquoBRI Instead of OBOR mdash ChinaEdits the English Name of its Most Ambitious International Projectrdquo LatvijasArpolitikas Instituts July 28 2016 see httpwwwlailvviedoklibri-instead-of-obor-china-edits-the-english-name-of-its-most-ambitious-international-project-532 accessed 20 March 2019

9 Angela Stanzel ldquoChinarsquos Belt and Road new name same doubtsrdquo EuropeanCouncil on Foreign Relations May 19 2017 see httpswwwecfreuarticlecommentary_chinas_belt_and_road_new_name_same_doubts accessed 20March 2019

10 Xu Shanda ldquoChinese Marshall Plan to be supported by 500 billion in foreignexchange reservesrdquo Daily Economic News August 2009 see httpfinancesinacomcnchinahgjj2009080607566578273shtml accessed 22March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 9

These proposals soon caught the attention of the political leadership andafter the 18th CPC National Congress were embraced and incorporatedinto a broader unified initiative called the BRI11

Chinese officials saw the BRI as a means of addressing both the domesticand foreign policy imperatives of China12 When President Xi Jinping tookover power on 14 March 2013 he had evoked his doctrine of the ldquoChinesedreamrdquo and the BRI is in all respects aimed at ldquoorganically linking theChinese dream to the global dreamrdquo Many scholars also see the BRI asthe Chinese Marshall Plan to ldquopromote growth in its poorer but vulnerablewestern regions as well as adjacent and strategic Central Asia or as apivot towards Eurasia in response to Americarsquos rebalance to Asiastrategyrdquo13 The BRIrsquos ambitions have left much room for multiplespeculations However the Chinese government has often discouragedthese descriptions of the BRI and have emphasized voluntary participationand inclusive growth

Nevertheless there are a few key rationales of the BRI that cannot beoverlooked

121 Going Out 20 Step towards Globalisation Integrationand Development

The BRI is commensurate with Chinarsquos out going policy to facilitate itsglobal rise in the international system it also gives Chinese overseas foreigndirect investment a more strategic direction and impetus Initially Chinarsquosrelationships with BRI countries were composed of individual bilateralrelationships but with the introduction of the BRI project theserelationships have come to be positioned in multilateral international relations

11 Richard Ghiasy and Jiayi Zhou ldquoThe Silk Road Economic Belt ConsideringSecurity Implications and EU- China cooperation prospectsrdquo SIPRI February

2017 In Chinese the initiative is called ldquoNamp^Niuml rdquo (literally lsquoone belt one roadrsquo)The English name was changed from One Belt One Road (or OBOR) to thenow widely accepted BRI around 2017

12 Ibid13 See note 3

10 | AJEY LELE AND KRITIKA ROY

within the BRI framework14 The BRI complies with the policyrsquos aim ofintegrating China more deeply into the world economic system while alsopositing China as a leader in that system

President Xi has claimed that 57 countries became active participants inthe BRI with 30 of them formally signing BRI cooperation deals by mid-201615 The country also claims to have established 75 overseas economiccooperation zones in 35 BRI countries16 The ldquoconnectivityrdquo offered bythe BRI is complemented by alternative financial and governance institutionsnamely the New Development Bank Asian Infrastructure InvestmentBank and the Shanghai Cooperation Organization These institutions areenvisaged to reformulate the world to Chinarsquos advantage These new unitsof the international system respond to the needs of urbanisation and reflectthe geopolitical economic and ideological preferences of their founder17

as well as the concept of a ldquoreturn to an Asia-centric order wherein Chinais claiming its rightful place in the current international dynamicsrdquo18 Thoughthere is no denying the fact that the BRI is an ambitious geostrategic initiativeone can nevertheless also see the elements of a new approach to

14 Hideo Ohashi ldquoThe Belt and Road Initiative (BRI) in the context of Chinarsquosopening-up policyrdquo Journal of Contemporary East Asia Studies 2018 see httpswwwtandfonlinecomdoifull1010802476102820181564615 accessed 22March 2019

15 ldquoXi Jinping Highlights Positive Results of lsquoBelt and Roadrsquo Construction inVarious Aspects When Delivering a Speech at Legislative Chamber of the SupremeAssembly of Uzbekistanrdquo Ministry of Foreign Affairs of the Peoplersquos Republicof China June 22 2016 see httpswwwfmprcgovcncecgmbengzgywt1375058htm accessed 24 September 2019

16 Lu Hui ldquoChinarsquos Outbound Direct Investment Surges in Jan-Aprilrdquo XinhuaMay 16 2016 see httpwwwxinhuanetcomenglish2016- 0516c_135363299htm accessed 24 September 2019

17 Hal Brands ldquoChinarsquos Master Plan A Worldwide Web of Institutions-Beijing isbuilding an Interlocking Series of Security Trade and Educational bodies toRival the Westrdquo Bloomberg Opinion 12 June 2018

18 Yu-Wen Chen and Obert Hodzi ldquoThe Great Rejuvenation Chinarsquos Search for aNew lsquoGlobal Orderrsquordquo Institute for Security and Development Policy 2017Sweden

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 3: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

2 | AJEY LELE AND KRITIKA ROY

Institute for Defence Studies and Analyses New Delhi

All rights reserved No part of this publication may be reproduced sorted in aretrieval system or transmitted in any form or by any means electronic mechanicalphoto-copying recording or otherwise without the prior permission of the Institutefor Defence Studies and Analyses (IDSA)

ISBN 978-93-82169-90-1

First Published November 2019

Price

Published by Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram MargDelhi Cantt New Delhi - 110 010Tel (91-11) 2671-7983Fax(91-11) 2615 4191E-mail contactusidsainWebsite httpwwwidsain

Cover ampLayout by Vaijayanti Patankar

Printed at KW Publishers Pvt Ltd

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 3

CONTENTS

SECTION I 5

11 BACKGROUND 6

12 PURPOSE OF THE BRI 8

SECTION II 14

21 DIGITAL SILK ROAD 14

SECTION III 26

31 SPACE SILK ROAD 26

SECTION IV 41

41 ASSESSING THE DIGITAL AND SPACE BRI 41

SECTION V 52

51 LEARNING AND IMPLICATIONS FOR INDIA 52

52 CONCLUSION 55

4 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5

From 25 to 27 April 2019 Beijing welcomed leaders from around 37countries and delegates from over 150 countries at the second Belt andRoad forum1 based on the theme ldquoShaping a Brighter Shared FuturerdquoPresident Xi Jinpingrsquos speech during the event stressed the fact that althoughthe Belt and Road initiative (BRI) has been launched by China itsldquoopportunities and outcomesrdquo could be reaped by the world Much hashappened since the first inaugural Forum in 2017 including the BRI beingconsecrated into the constitution of the Chinese Communist Party andPresident Xi Jinping removing Presidential term limits Both moves givemore validation to the actualisation of the BRI The second BRI forumfocused mainly on refuting the international criticism of the initiativeespecially against Chinarsquos alleged debt trap diplomacy2 In lieu of the previouscondemnation the ldquoDebt Sustainability Frameworkrdquo was announced atthe forum besides the ldquoBeijing Initiative for the Clean Silk Roadrdquo and theldquoGreen Silk Road Envoys Programmerdquo for the participating countriesFurthermore the forum also emphasized the steps being taken on zerotolerance on corruption and the pursuit of high quality development Inaddition to the more traditional areas of economic connection it was alsosaid that the program would ldquoencourage the development of digitalinfrastructurerdquo

China is well on the way to being a global leader in key emerging anddigital technologies Beyond its domestic market international statisticsclearly point to Chinarsquos leading role in exporting digital goods and services

SECTION I

1 The Belt and Road Forum for International Cooperation (BRF) is a high-leveland comprehensive multilateral platform for the Belt and Road cooperation

2 Chinarsquos Debt Trap is a most debated concern that bounds the recipient countriesensnared in a lofty debt that leaves them vulnerable to Chinarsquos influence

6 | AJEY LELE AND KRITIKA ROY

Digital technology has also given a push to Chinarsquos economy Chinesecompanies are competing successfully worldwide in ICT products andservices and are at the forefront of shaping international standards foremerging technologies In fact the Digital Silk Road project was promotedduring the ldquoBelt and Road CEO Conferencerdquo This conference was thefirst of its kind and had the representation from global Fortune 500companies and other Chinese firms as an indication of their interest Thoughnot much light was shed on the space medium of the BRI nonethelessone cannot be ignorant of the developments on that front This papercomplements the existing literature on BRI while highlighting the need toinvolve the digital and space sector as that allows China to have greaterflexibility to expand both business and influence over the regions of itsinterest Furthermore this paper underscores the likely implications in theforeseeable future of Chinarsquos Digital and Space expansion in economicgeopolitical technological security and geostrategic dimensions The paperalso explores the likely implications and learnings for India The paperconcludes by recommending a balanced approach that allows mutualbenefit and growth for all the BRI as well as non-BRI states

11 BACKGROUND

The BRI is the reincarnation of the ancient silk route which was a traderoute connecting China to Europe through land and sea routes The ancientsilk route derived its name from silk mdash the major product that was tradedacross the route Trade via the silk route also included a huge network ofstrategically located trading posts markets and thoroughfares designedto streamline the transport exchange distribution and storage of silkother and goods3 Besides trade this route also opened the gate for theexchange of philosophy religious beliefs science language and culture

3 ldquoAbout the Silk Roadrdquo United Nations Educational Scientific and CulturalOrganization see httpsenunescoorgsilkroadabout-silk-road accessed 15March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 7

The idea of the new silk route was first floated by President Xi Jinpingduring a visit to Kazakhstan in 20134 Following the announcement anaction plan was released in 2015 by the Ministry of Foreign Affairs andthe National Development and Reform Commission Plan laid out by theMinistry of Commerce gave more clarity to the proposed idea5 This planemphasized on the mission as well as the vision of the BRI to develop anefficient and secure network of land sea and air passages on the basis ofldquomutual trust equality and mutual benefits openness inclusiveness andmutual learning and win-win cooperationrdquo6

Additionally it is important to note that the notion of connectivity hasundergone a tremendous change in the twenty first century It is no longerlimited to roads rails and sea rather it is the virtual connectivity thatfacilitates the functioning of all three in real time In the era of the IndustrialRevolution of 40 China also envisaged the integration of markets andconnecting countries along its Belt and Road with a network of next-generation digital infrastructure and satellite coverage Against this backdropan Information and Space Silk Road was also stated as one of the subgoals of the BRI that emphasized the agenda of strengthening digitalinfrastructure developing common technology standards and deepeningspace cooperation7

4 Kishan S Rana ldquoChinarsquos Belt and Road Initiative Implications Prospects andConsequences Impact on India and its China Diplomacyrdquo Institute of ChineseStudies September 2017 see httpswwwicsinorguploads2017100648af1a73bb7c5ce9ae949b0f0ac48112pdf accessed 15 March 2019

5 Manoj Joshi ldquoThe Belt and Road Initiative aka One Belt One Road SchemerdquoORF May 2018 see httpswwworfonlineorgwp-contentuploads201801The-Belt-Road-Initiative-pdf accessed 17 March 2019

6 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform CommissionMinistry of Foreign Affairs and Ministry of Commerce of the Peoplersquos Republicof China March 28 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 18 March 2019

7 Chan Jia Hao ldquoChinarsquos Digital Silk Road A Game Changer for Asian EconomiesrdquoThe Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 19 March 2019

8 | AJEY LELE AND KRITIKA ROY

The modern equivalent of the ancient silk route called the lsquoOne Belt OneRoadrsquo (OBOR) encompassed the Silk Road Economic Belt and the Twenty-first Century Maritime Silk Road This English translation of Chinese Silkroad mdash ldquoOBORrdquo mdash was later changed to Belt and Road Initiative (BRI)as the former had attracted several negative interpretations and manyofficials also felt that the perception of a single road as a limited offercould drive the regional partners into competition mode and thereforethe stressing of the numeral ldquoonerdquo had to be avoided8 Moreover theterm ldquoBelt and Roadrdquo would better reflect the projectrsquos numerous clusternetworks and sound more like an inclusive initiative rather than a politicalstrategy9 Even the motive of establishing the digital and space Silk Roadresonates the same factor of inclusive growth and prosperity for allparticipating countries

12 PURPOSE OF THE BRI

Chinarsquos BRI program finds its origin in a number of policyrecommendations emanating from the various ministries of China Thesepolicy suggestions were regarding issues like promoting economiccooperation initiatives the large scale outpouring of Chinarsquos capital reservesso as to stimulate economic demand overseas to mitigate Chinarsquos structuralovercapacity problems and to resolve the issue of plummeting demand10

8 Una Aleksandra and Berzina Cerenkova ldquoBRI Instead of OBOR mdash ChinaEdits the English Name of its Most Ambitious International Projectrdquo LatvijasArpolitikas Instituts July 28 2016 see httpwwwlailvviedoklibri-instead-of-obor-china-edits-the-english-name-of-its-most-ambitious-international-project-532 accessed 20 March 2019

9 Angela Stanzel ldquoChinarsquos Belt and Road new name same doubtsrdquo EuropeanCouncil on Foreign Relations May 19 2017 see httpswwwecfreuarticlecommentary_chinas_belt_and_road_new_name_same_doubts accessed 20March 2019

10 Xu Shanda ldquoChinese Marshall Plan to be supported by 500 billion in foreignexchange reservesrdquo Daily Economic News August 2009 see httpfinancesinacomcnchinahgjj2009080607566578273shtml accessed 22March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 9

These proposals soon caught the attention of the political leadership andafter the 18th CPC National Congress were embraced and incorporatedinto a broader unified initiative called the BRI11

Chinese officials saw the BRI as a means of addressing both the domesticand foreign policy imperatives of China12 When President Xi Jinping tookover power on 14 March 2013 he had evoked his doctrine of the ldquoChinesedreamrdquo and the BRI is in all respects aimed at ldquoorganically linking theChinese dream to the global dreamrdquo Many scholars also see the BRI asthe Chinese Marshall Plan to ldquopromote growth in its poorer but vulnerablewestern regions as well as adjacent and strategic Central Asia or as apivot towards Eurasia in response to Americarsquos rebalance to Asiastrategyrdquo13 The BRIrsquos ambitions have left much room for multiplespeculations However the Chinese government has often discouragedthese descriptions of the BRI and have emphasized voluntary participationand inclusive growth

Nevertheless there are a few key rationales of the BRI that cannot beoverlooked

121 Going Out 20 Step towards Globalisation Integrationand Development

The BRI is commensurate with Chinarsquos out going policy to facilitate itsglobal rise in the international system it also gives Chinese overseas foreigndirect investment a more strategic direction and impetus Initially Chinarsquosrelationships with BRI countries were composed of individual bilateralrelationships but with the introduction of the BRI project theserelationships have come to be positioned in multilateral international relations

11 Richard Ghiasy and Jiayi Zhou ldquoThe Silk Road Economic Belt ConsideringSecurity Implications and EU- China cooperation prospectsrdquo SIPRI February

2017 In Chinese the initiative is called ldquoNamp^Niuml rdquo (literally lsquoone belt one roadrsquo)The English name was changed from One Belt One Road (or OBOR) to thenow widely accepted BRI around 2017

12 Ibid13 See note 3

10 | AJEY LELE AND KRITIKA ROY

within the BRI framework14 The BRI complies with the policyrsquos aim ofintegrating China more deeply into the world economic system while alsopositing China as a leader in that system

President Xi has claimed that 57 countries became active participants inthe BRI with 30 of them formally signing BRI cooperation deals by mid-201615 The country also claims to have established 75 overseas economiccooperation zones in 35 BRI countries16 The ldquoconnectivityrdquo offered bythe BRI is complemented by alternative financial and governance institutionsnamely the New Development Bank Asian Infrastructure InvestmentBank and the Shanghai Cooperation Organization These institutions areenvisaged to reformulate the world to Chinarsquos advantage These new unitsof the international system respond to the needs of urbanisation and reflectthe geopolitical economic and ideological preferences of their founder17

as well as the concept of a ldquoreturn to an Asia-centric order wherein Chinais claiming its rightful place in the current international dynamicsrdquo18 Thoughthere is no denying the fact that the BRI is an ambitious geostrategic initiativeone can nevertheless also see the elements of a new approach to

14 Hideo Ohashi ldquoThe Belt and Road Initiative (BRI) in the context of Chinarsquosopening-up policyrdquo Journal of Contemporary East Asia Studies 2018 see httpswwwtandfonlinecomdoifull1010802476102820181564615 accessed 22March 2019

15 ldquoXi Jinping Highlights Positive Results of lsquoBelt and Roadrsquo Construction inVarious Aspects When Delivering a Speech at Legislative Chamber of the SupremeAssembly of Uzbekistanrdquo Ministry of Foreign Affairs of the Peoplersquos Republicof China June 22 2016 see httpswwwfmprcgovcncecgmbengzgywt1375058htm accessed 24 September 2019

16 Lu Hui ldquoChinarsquos Outbound Direct Investment Surges in Jan-Aprilrdquo XinhuaMay 16 2016 see httpwwwxinhuanetcomenglish2016- 0516c_135363299htm accessed 24 September 2019

17 Hal Brands ldquoChinarsquos Master Plan A Worldwide Web of Institutions-Beijing isbuilding an Interlocking Series of Security Trade and Educational bodies toRival the Westrdquo Bloomberg Opinion 12 June 2018

18 Yu-Wen Chen and Obert Hodzi ldquoThe Great Rejuvenation Chinarsquos Search for aNew lsquoGlobal Orderrsquordquo Institute for Security and Development Policy 2017Sweden

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 4: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 3

CONTENTS

SECTION I 5

11 BACKGROUND 6

12 PURPOSE OF THE BRI 8

SECTION II 14

21 DIGITAL SILK ROAD 14

SECTION III 26

31 SPACE SILK ROAD 26

SECTION IV 41

41 ASSESSING THE DIGITAL AND SPACE BRI 41

SECTION V 52

51 LEARNING AND IMPLICATIONS FOR INDIA 52

52 CONCLUSION 55

4 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5

From 25 to 27 April 2019 Beijing welcomed leaders from around 37countries and delegates from over 150 countries at the second Belt andRoad forum1 based on the theme ldquoShaping a Brighter Shared FuturerdquoPresident Xi Jinpingrsquos speech during the event stressed the fact that althoughthe Belt and Road initiative (BRI) has been launched by China itsldquoopportunities and outcomesrdquo could be reaped by the world Much hashappened since the first inaugural Forum in 2017 including the BRI beingconsecrated into the constitution of the Chinese Communist Party andPresident Xi Jinping removing Presidential term limits Both moves givemore validation to the actualisation of the BRI The second BRI forumfocused mainly on refuting the international criticism of the initiativeespecially against Chinarsquos alleged debt trap diplomacy2 In lieu of the previouscondemnation the ldquoDebt Sustainability Frameworkrdquo was announced atthe forum besides the ldquoBeijing Initiative for the Clean Silk Roadrdquo and theldquoGreen Silk Road Envoys Programmerdquo for the participating countriesFurthermore the forum also emphasized the steps being taken on zerotolerance on corruption and the pursuit of high quality development Inaddition to the more traditional areas of economic connection it was alsosaid that the program would ldquoencourage the development of digitalinfrastructurerdquo

China is well on the way to being a global leader in key emerging anddigital technologies Beyond its domestic market international statisticsclearly point to Chinarsquos leading role in exporting digital goods and services

SECTION I

1 The Belt and Road Forum for International Cooperation (BRF) is a high-leveland comprehensive multilateral platform for the Belt and Road cooperation

2 Chinarsquos Debt Trap is a most debated concern that bounds the recipient countriesensnared in a lofty debt that leaves them vulnerable to Chinarsquos influence

6 | AJEY LELE AND KRITIKA ROY

Digital technology has also given a push to Chinarsquos economy Chinesecompanies are competing successfully worldwide in ICT products andservices and are at the forefront of shaping international standards foremerging technologies In fact the Digital Silk Road project was promotedduring the ldquoBelt and Road CEO Conferencerdquo This conference was thefirst of its kind and had the representation from global Fortune 500companies and other Chinese firms as an indication of their interest Thoughnot much light was shed on the space medium of the BRI nonethelessone cannot be ignorant of the developments on that front This papercomplements the existing literature on BRI while highlighting the need toinvolve the digital and space sector as that allows China to have greaterflexibility to expand both business and influence over the regions of itsinterest Furthermore this paper underscores the likely implications in theforeseeable future of Chinarsquos Digital and Space expansion in economicgeopolitical technological security and geostrategic dimensions The paperalso explores the likely implications and learnings for India The paperconcludes by recommending a balanced approach that allows mutualbenefit and growth for all the BRI as well as non-BRI states

11 BACKGROUND

The BRI is the reincarnation of the ancient silk route which was a traderoute connecting China to Europe through land and sea routes The ancientsilk route derived its name from silk mdash the major product that was tradedacross the route Trade via the silk route also included a huge network ofstrategically located trading posts markets and thoroughfares designedto streamline the transport exchange distribution and storage of silkother and goods3 Besides trade this route also opened the gate for theexchange of philosophy religious beliefs science language and culture

3 ldquoAbout the Silk Roadrdquo United Nations Educational Scientific and CulturalOrganization see httpsenunescoorgsilkroadabout-silk-road accessed 15March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 7

The idea of the new silk route was first floated by President Xi Jinpingduring a visit to Kazakhstan in 20134 Following the announcement anaction plan was released in 2015 by the Ministry of Foreign Affairs andthe National Development and Reform Commission Plan laid out by theMinistry of Commerce gave more clarity to the proposed idea5 This planemphasized on the mission as well as the vision of the BRI to develop anefficient and secure network of land sea and air passages on the basis ofldquomutual trust equality and mutual benefits openness inclusiveness andmutual learning and win-win cooperationrdquo6

Additionally it is important to note that the notion of connectivity hasundergone a tremendous change in the twenty first century It is no longerlimited to roads rails and sea rather it is the virtual connectivity thatfacilitates the functioning of all three in real time In the era of the IndustrialRevolution of 40 China also envisaged the integration of markets andconnecting countries along its Belt and Road with a network of next-generation digital infrastructure and satellite coverage Against this backdropan Information and Space Silk Road was also stated as one of the subgoals of the BRI that emphasized the agenda of strengthening digitalinfrastructure developing common technology standards and deepeningspace cooperation7

4 Kishan S Rana ldquoChinarsquos Belt and Road Initiative Implications Prospects andConsequences Impact on India and its China Diplomacyrdquo Institute of ChineseStudies September 2017 see httpswwwicsinorguploads2017100648af1a73bb7c5ce9ae949b0f0ac48112pdf accessed 15 March 2019

5 Manoj Joshi ldquoThe Belt and Road Initiative aka One Belt One Road SchemerdquoORF May 2018 see httpswwworfonlineorgwp-contentuploads201801The-Belt-Road-Initiative-pdf accessed 17 March 2019

6 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform CommissionMinistry of Foreign Affairs and Ministry of Commerce of the Peoplersquos Republicof China March 28 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 18 March 2019

7 Chan Jia Hao ldquoChinarsquos Digital Silk Road A Game Changer for Asian EconomiesrdquoThe Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 19 March 2019

8 | AJEY LELE AND KRITIKA ROY

The modern equivalent of the ancient silk route called the lsquoOne Belt OneRoadrsquo (OBOR) encompassed the Silk Road Economic Belt and the Twenty-first Century Maritime Silk Road This English translation of Chinese Silkroad mdash ldquoOBORrdquo mdash was later changed to Belt and Road Initiative (BRI)as the former had attracted several negative interpretations and manyofficials also felt that the perception of a single road as a limited offercould drive the regional partners into competition mode and thereforethe stressing of the numeral ldquoonerdquo had to be avoided8 Moreover theterm ldquoBelt and Roadrdquo would better reflect the projectrsquos numerous clusternetworks and sound more like an inclusive initiative rather than a politicalstrategy9 Even the motive of establishing the digital and space Silk Roadresonates the same factor of inclusive growth and prosperity for allparticipating countries

12 PURPOSE OF THE BRI

Chinarsquos BRI program finds its origin in a number of policyrecommendations emanating from the various ministries of China Thesepolicy suggestions were regarding issues like promoting economiccooperation initiatives the large scale outpouring of Chinarsquos capital reservesso as to stimulate economic demand overseas to mitigate Chinarsquos structuralovercapacity problems and to resolve the issue of plummeting demand10

8 Una Aleksandra and Berzina Cerenkova ldquoBRI Instead of OBOR mdash ChinaEdits the English Name of its Most Ambitious International Projectrdquo LatvijasArpolitikas Instituts July 28 2016 see httpwwwlailvviedoklibri-instead-of-obor-china-edits-the-english-name-of-its-most-ambitious-international-project-532 accessed 20 March 2019

9 Angela Stanzel ldquoChinarsquos Belt and Road new name same doubtsrdquo EuropeanCouncil on Foreign Relations May 19 2017 see httpswwwecfreuarticlecommentary_chinas_belt_and_road_new_name_same_doubts accessed 20March 2019

10 Xu Shanda ldquoChinese Marshall Plan to be supported by 500 billion in foreignexchange reservesrdquo Daily Economic News August 2009 see httpfinancesinacomcnchinahgjj2009080607566578273shtml accessed 22March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 9

These proposals soon caught the attention of the political leadership andafter the 18th CPC National Congress were embraced and incorporatedinto a broader unified initiative called the BRI11

Chinese officials saw the BRI as a means of addressing both the domesticand foreign policy imperatives of China12 When President Xi Jinping tookover power on 14 March 2013 he had evoked his doctrine of the ldquoChinesedreamrdquo and the BRI is in all respects aimed at ldquoorganically linking theChinese dream to the global dreamrdquo Many scholars also see the BRI asthe Chinese Marshall Plan to ldquopromote growth in its poorer but vulnerablewestern regions as well as adjacent and strategic Central Asia or as apivot towards Eurasia in response to Americarsquos rebalance to Asiastrategyrdquo13 The BRIrsquos ambitions have left much room for multiplespeculations However the Chinese government has often discouragedthese descriptions of the BRI and have emphasized voluntary participationand inclusive growth

Nevertheless there are a few key rationales of the BRI that cannot beoverlooked

121 Going Out 20 Step towards Globalisation Integrationand Development

The BRI is commensurate with Chinarsquos out going policy to facilitate itsglobal rise in the international system it also gives Chinese overseas foreigndirect investment a more strategic direction and impetus Initially Chinarsquosrelationships with BRI countries were composed of individual bilateralrelationships but with the introduction of the BRI project theserelationships have come to be positioned in multilateral international relations

11 Richard Ghiasy and Jiayi Zhou ldquoThe Silk Road Economic Belt ConsideringSecurity Implications and EU- China cooperation prospectsrdquo SIPRI February

2017 In Chinese the initiative is called ldquoNamp^Niuml rdquo (literally lsquoone belt one roadrsquo)The English name was changed from One Belt One Road (or OBOR) to thenow widely accepted BRI around 2017

12 Ibid13 See note 3

10 | AJEY LELE AND KRITIKA ROY

within the BRI framework14 The BRI complies with the policyrsquos aim ofintegrating China more deeply into the world economic system while alsopositing China as a leader in that system

President Xi has claimed that 57 countries became active participants inthe BRI with 30 of them formally signing BRI cooperation deals by mid-201615 The country also claims to have established 75 overseas economiccooperation zones in 35 BRI countries16 The ldquoconnectivityrdquo offered bythe BRI is complemented by alternative financial and governance institutionsnamely the New Development Bank Asian Infrastructure InvestmentBank and the Shanghai Cooperation Organization These institutions areenvisaged to reformulate the world to Chinarsquos advantage These new unitsof the international system respond to the needs of urbanisation and reflectthe geopolitical economic and ideological preferences of their founder17

as well as the concept of a ldquoreturn to an Asia-centric order wherein Chinais claiming its rightful place in the current international dynamicsrdquo18 Thoughthere is no denying the fact that the BRI is an ambitious geostrategic initiativeone can nevertheless also see the elements of a new approach to

14 Hideo Ohashi ldquoThe Belt and Road Initiative (BRI) in the context of Chinarsquosopening-up policyrdquo Journal of Contemporary East Asia Studies 2018 see httpswwwtandfonlinecomdoifull1010802476102820181564615 accessed 22March 2019

15 ldquoXi Jinping Highlights Positive Results of lsquoBelt and Roadrsquo Construction inVarious Aspects When Delivering a Speech at Legislative Chamber of the SupremeAssembly of Uzbekistanrdquo Ministry of Foreign Affairs of the Peoplersquos Republicof China June 22 2016 see httpswwwfmprcgovcncecgmbengzgywt1375058htm accessed 24 September 2019

16 Lu Hui ldquoChinarsquos Outbound Direct Investment Surges in Jan-Aprilrdquo XinhuaMay 16 2016 see httpwwwxinhuanetcomenglish2016- 0516c_135363299htm accessed 24 September 2019

17 Hal Brands ldquoChinarsquos Master Plan A Worldwide Web of Institutions-Beijing isbuilding an Interlocking Series of Security Trade and Educational bodies toRival the Westrdquo Bloomberg Opinion 12 June 2018

18 Yu-Wen Chen and Obert Hodzi ldquoThe Great Rejuvenation Chinarsquos Search for aNew lsquoGlobal Orderrsquordquo Institute for Security and Development Policy 2017Sweden

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 5: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

4 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5

From 25 to 27 April 2019 Beijing welcomed leaders from around 37countries and delegates from over 150 countries at the second Belt andRoad forum1 based on the theme ldquoShaping a Brighter Shared FuturerdquoPresident Xi Jinpingrsquos speech during the event stressed the fact that althoughthe Belt and Road initiative (BRI) has been launched by China itsldquoopportunities and outcomesrdquo could be reaped by the world Much hashappened since the first inaugural Forum in 2017 including the BRI beingconsecrated into the constitution of the Chinese Communist Party andPresident Xi Jinping removing Presidential term limits Both moves givemore validation to the actualisation of the BRI The second BRI forumfocused mainly on refuting the international criticism of the initiativeespecially against Chinarsquos alleged debt trap diplomacy2 In lieu of the previouscondemnation the ldquoDebt Sustainability Frameworkrdquo was announced atthe forum besides the ldquoBeijing Initiative for the Clean Silk Roadrdquo and theldquoGreen Silk Road Envoys Programmerdquo for the participating countriesFurthermore the forum also emphasized the steps being taken on zerotolerance on corruption and the pursuit of high quality development Inaddition to the more traditional areas of economic connection it was alsosaid that the program would ldquoencourage the development of digitalinfrastructurerdquo

China is well on the way to being a global leader in key emerging anddigital technologies Beyond its domestic market international statisticsclearly point to Chinarsquos leading role in exporting digital goods and services

SECTION I

1 The Belt and Road Forum for International Cooperation (BRF) is a high-leveland comprehensive multilateral platform for the Belt and Road cooperation

2 Chinarsquos Debt Trap is a most debated concern that bounds the recipient countriesensnared in a lofty debt that leaves them vulnerable to Chinarsquos influence

6 | AJEY LELE AND KRITIKA ROY

Digital technology has also given a push to Chinarsquos economy Chinesecompanies are competing successfully worldwide in ICT products andservices and are at the forefront of shaping international standards foremerging technologies In fact the Digital Silk Road project was promotedduring the ldquoBelt and Road CEO Conferencerdquo This conference was thefirst of its kind and had the representation from global Fortune 500companies and other Chinese firms as an indication of their interest Thoughnot much light was shed on the space medium of the BRI nonethelessone cannot be ignorant of the developments on that front This papercomplements the existing literature on BRI while highlighting the need toinvolve the digital and space sector as that allows China to have greaterflexibility to expand both business and influence over the regions of itsinterest Furthermore this paper underscores the likely implications in theforeseeable future of Chinarsquos Digital and Space expansion in economicgeopolitical technological security and geostrategic dimensions The paperalso explores the likely implications and learnings for India The paperconcludes by recommending a balanced approach that allows mutualbenefit and growth for all the BRI as well as non-BRI states

11 BACKGROUND

The BRI is the reincarnation of the ancient silk route which was a traderoute connecting China to Europe through land and sea routes The ancientsilk route derived its name from silk mdash the major product that was tradedacross the route Trade via the silk route also included a huge network ofstrategically located trading posts markets and thoroughfares designedto streamline the transport exchange distribution and storage of silkother and goods3 Besides trade this route also opened the gate for theexchange of philosophy religious beliefs science language and culture

3 ldquoAbout the Silk Roadrdquo United Nations Educational Scientific and CulturalOrganization see httpsenunescoorgsilkroadabout-silk-road accessed 15March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 7

The idea of the new silk route was first floated by President Xi Jinpingduring a visit to Kazakhstan in 20134 Following the announcement anaction plan was released in 2015 by the Ministry of Foreign Affairs andthe National Development and Reform Commission Plan laid out by theMinistry of Commerce gave more clarity to the proposed idea5 This planemphasized on the mission as well as the vision of the BRI to develop anefficient and secure network of land sea and air passages on the basis ofldquomutual trust equality and mutual benefits openness inclusiveness andmutual learning and win-win cooperationrdquo6

Additionally it is important to note that the notion of connectivity hasundergone a tremendous change in the twenty first century It is no longerlimited to roads rails and sea rather it is the virtual connectivity thatfacilitates the functioning of all three in real time In the era of the IndustrialRevolution of 40 China also envisaged the integration of markets andconnecting countries along its Belt and Road with a network of next-generation digital infrastructure and satellite coverage Against this backdropan Information and Space Silk Road was also stated as one of the subgoals of the BRI that emphasized the agenda of strengthening digitalinfrastructure developing common technology standards and deepeningspace cooperation7

4 Kishan S Rana ldquoChinarsquos Belt and Road Initiative Implications Prospects andConsequences Impact on India and its China Diplomacyrdquo Institute of ChineseStudies September 2017 see httpswwwicsinorguploads2017100648af1a73bb7c5ce9ae949b0f0ac48112pdf accessed 15 March 2019

5 Manoj Joshi ldquoThe Belt and Road Initiative aka One Belt One Road SchemerdquoORF May 2018 see httpswwworfonlineorgwp-contentuploads201801The-Belt-Road-Initiative-pdf accessed 17 March 2019

6 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform CommissionMinistry of Foreign Affairs and Ministry of Commerce of the Peoplersquos Republicof China March 28 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 18 March 2019

7 Chan Jia Hao ldquoChinarsquos Digital Silk Road A Game Changer for Asian EconomiesrdquoThe Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 19 March 2019

8 | AJEY LELE AND KRITIKA ROY

The modern equivalent of the ancient silk route called the lsquoOne Belt OneRoadrsquo (OBOR) encompassed the Silk Road Economic Belt and the Twenty-first Century Maritime Silk Road This English translation of Chinese Silkroad mdash ldquoOBORrdquo mdash was later changed to Belt and Road Initiative (BRI)as the former had attracted several negative interpretations and manyofficials also felt that the perception of a single road as a limited offercould drive the regional partners into competition mode and thereforethe stressing of the numeral ldquoonerdquo had to be avoided8 Moreover theterm ldquoBelt and Roadrdquo would better reflect the projectrsquos numerous clusternetworks and sound more like an inclusive initiative rather than a politicalstrategy9 Even the motive of establishing the digital and space Silk Roadresonates the same factor of inclusive growth and prosperity for allparticipating countries

12 PURPOSE OF THE BRI

Chinarsquos BRI program finds its origin in a number of policyrecommendations emanating from the various ministries of China Thesepolicy suggestions were regarding issues like promoting economiccooperation initiatives the large scale outpouring of Chinarsquos capital reservesso as to stimulate economic demand overseas to mitigate Chinarsquos structuralovercapacity problems and to resolve the issue of plummeting demand10

8 Una Aleksandra and Berzina Cerenkova ldquoBRI Instead of OBOR mdash ChinaEdits the English Name of its Most Ambitious International Projectrdquo LatvijasArpolitikas Instituts July 28 2016 see httpwwwlailvviedoklibri-instead-of-obor-china-edits-the-english-name-of-its-most-ambitious-international-project-532 accessed 20 March 2019

9 Angela Stanzel ldquoChinarsquos Belt and Road new name same doubtsrdquo EuropeanCouncil on Foreign Relations May 19 2017 see httpswwwecfreuarticlecommentary_chinas_belt_and_road_new_name_same_doubts accessed 20March 2019

10 Xu Shanda ldquoChinese Marshall Plan to be supported by 500 billion in foreignexchange reservesrdquo Daily Economic News August 2009 see httpfinancesinacomcnchinahgjj2009080607566578273shtml accessed 22March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 9

These proposals soon caught the attention of the political leadership andafter the 18th CPC National Congress were embraced and incorporatedinto a broader unified initiative called the BRI11

Chinese officials saw the BRI as a means of addressing both the domesticand foreign policy imperatives of China12 When President Xi Jinping tookover power on 14 March 2013 he had evoked his doctrine of the ldquoChinesedreamrdquo and the BRI is in all respects aimed at ldquoorganically linking theChinese dream to the global dreamrdquo Many scholars also see the BRI asthe Chinese Marshall Plan to ldquopromote growth in its poorer but vulnerablewestern regions as well as adjacent and strategic Central Asia or as apivot towards Eurasia in response to Americarsquos rebalance to Asiastrategyrdquo13 The BRIrsquos ambitions have left much room for multiplespeculations However the Chinese government has often discouragedthese descriptions of the BRI and have emphasized voluntary participationand inclusive growth

Nevertheless there are a few key rationales of the BRI that cannot beoverlooked

121 Going Out 20 Step towards Globalisation Integrationand Development

The BRI is commensurate with Chinarsquos out going policy to facilitate itsglobal rise in the international system it also gives Chinese overseas foreigndirect investment a more strategic direction and impetus Initially Chinarsquosrelationships with BRI countries were composed of individual bilateralrelationships but with the introduction of the BRI project theserelationships have come to be positioned in multilateral international relations

11 Richard Ghiasy and Jiayi Zhou ldquoThe Silk Road Economic Belt ConsideringSecurity Implications and EU- China cooperation prospectsrdquo SIPRI February

2017 In Chinese the initiative is called ldquoNamp^Niuml rdquo (literally lsquoone belt one roadrsquo)The English name was changed from One Belt One Road (or OBOR) to thenow widely accepted BRI around 2017

12 Ibid13 See note 3

10 | AJEY LELE AND KRITIKA ROY

within the BRI framework14 The BRI complies with the policyrsquos aim ofintegrating China more deeply into the world economic system while alsopositing China as a leader in that system

President Xi has claimed that 57 countries became active participants inthe BRI with 30 of them formally signing BRI cooperation deals by mid-201615 The country also claims to have established 75 overseas economiccooperation zones in 35 BRI countries16 The ldquoconnectivityrdquo offered bythe BRI is complemented by alternative financial and governance institutionsnamely the New Development Bank Asian Infrastructure InvestmentBank and the Shanghai Cooperation Organization These institutions areenvisaged to reformulate the world to Chinarsquos advantage These new unitsof the international system respond to the needs of urbanisation and reflectthe geopolitical economic and ideological preferences of their founder17

as well as the concept of a ldquoreturn to an Asia-centric order wherein Chinais claiming its rightful place in the current international dynamicsrdquo18 Thoughthere is no denying the fact that the BRI is an ambitious geostrategic initiativeone can nevertheless also see the elements of a new approach to

14 Hideo Ohashi ldquoThe Belt and Road Initiative (BRI) in the context of Chinarsquosopening-up policyrdquo Journal of Contemporary East Asia Studies 2018 see httpswwwtandfonlinecomdoifull1010802476102820181564615 accessed 22March 2019

15 ldquoXi Jinping Highlights Positive Results of lsquoBelt and Roadrsquo Construction inVarious Aspects When Delivering a Speech at Legislative Chamber of the SupremeAssembly of Uzbekistanrdquo Ministry of Foreign Affairs of the Peoplersquos Republicof China June 22 2016 see httpswwwfmprcgovcncecgmbengzgywt1375058htm accessed 24 September 2019

16 Lu Hui ldquoChinarsquos Outbound Direct Investment Surges in Jan-Aprilrdquo XinhuaMay 16 2016 see httpwwwxinhuanetcomenglish2016- 0516c_135363299htm accessed 24 September 2019

17 Hal Brands ldquoChinarsquos Master Plan A Worldwide Web of Institutions-Beijing isbuilding an Interlocking Series of Security Trade and Educational bodies toRival the Westrdquo Bloomberg Opinion 12 June 2018

18 Yu-Wen Chen and Obert Hodzi ldquoThe Great Rejuvenation Chinarsquos Search for aNew lsquoGlobal Orderrsquordquo Institute for Security and Development Policy 2017Sweden

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 6: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5

From 25 to 27 April 2019 Beijing welcomed leaders from around 37countries and delegates from over 150 countries at the second Belt andRoad forum1 based on the theme ldquoShaping a Brighter Shared FuturerdquoPresident Xi Jinpingrsquos speech during the event stressed the fact that althoughthe Belt and Road initiative (BRI) has been launched by China itsldquoopportunities and outcomesrdquo could be reaped by the world Much hashappened since the first inaugural Forum in 2017 including the BRI beingconsecrated into the constitution of the Chinese Communist Party andPresident Xi Jinping removing Presidential term limits Both moves givemore validation to the actualisation of the BRI The second BRI forumfocused mainly on refuting the international criticism of the initiativeespecially against Chinarsquos alleged debt trap diplomacy2 In lieu of the previouscondemnation the ldquoDebt Sustainability Frameworkrdquo was announced atthe forum besides the ldquoBeijing Initiative for the Clean Silk Roadrdquo and theldquoGreen Silk Road Envoys Programmerdquo for the participating countriesFurthermore the forum also emphasized the steps being taken on zerotolerance on corruption and the pursuit of high quality development Inaddition to the more traditional areas of economic connection it was alsosaid that the program would ldquoencourage the development of digitalinfrastructurerdquo

China is well on the way to being a global leader in key emerging anddigital technologies Beyond its domestic market international statisticsclearly point to Chinarsquos leading role in exporting digital goods and services

SECTION I

1 The Belt and Road Forum for International Cooperation (BRF) is a high-leveland comprehensive multilateral platform for the Belt and Road cooperation

2 Chinarsquos Debt Trap is a most debated concern that bounds the recipient countriesensnared in a lofty debt that leaves them vulnerable to Chinarsquos influence

6 | AJEY LELE AND KRITIKA ROY

Digital technology has also given a push to Chinarsquos economy Chinesecompanies are competing successfully worldwide in ICT products andservices and are at the forefront of shaping international standards foremerging technologies In fact the Digital Silk Road project was promotedduring the ldquoBelt and Road CEO Conferencerdquo This conference was thefirst of its kind and had the representation from global Fortune 500companies and other Chinese firms as an indication of their interest Thoughnot much light was shed on the space medium of the BRI nonethelessone cannot be ignorant of the developments on that front This papercomplements the existing literature on BRI while highlighting the need toinvolve the digital and space sector as that allows China to have greaterflexibility to expand both business and influence over the regions of itsinterest Furthermore this paper underscores the likely implications in theforeseeable future of Chinarsquos Digital and Space expansion in economicgeopolitical technological security and geostrategic dimensions The paperalso explores the likely implications and learnings for India The paperconcludes by recommending a balanced approach that allows mutualbenefit and growth for all the BRI as well as non-BRI states

11 BACKGROUND

The BRI is the reincarnation of the ancient silk route which was a traderoute connecting China to Europe through land and sea routes The ancientsilk route derived its name from silk mdash the major product that was tradedacross the route Trade via the silk route also included a huge network ofstrategically located trading posts markets and thoroughfares designedto streamline the transport exchange distribution and storage of silkother and goods3 Besides trade this route also opened the gate for theexchange of philosophy religious beliefs science language and culture

3 ldquoAbout the Silk Roadrdquo United Nations Educational Scientific and CulturalOrganization see httpsenunescoorgsilkroadabout-silk-road accessed 15March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 7

The idea of the new silk route was first floated by President Xi Jinpingduring a visit to Kazakhstan in 20134 Following the announcement anaction plan was released in 2015 by the Ministry of Foreign Affairs andthe National Development and Reform Commission Plan laid out by theMinistry of Commerce gave more clarity to the proposed idea5 This planemphasized on the mission as well as the vision of the BRI to develop anefficient and secure network of land sea and air passages on the basis ofldquomutual trust equality and mutual benefits openness inclusiveness andmutual learning and win-win cooperationrdquo6

Additionally it is important to note that the notion of connectivity hasundergone a tremendous change in the twenty first century It is no longerlimited to roads rails and sea rather it is the virtual connectivity thatfacilitates the functioning of all three in real time In the era of the IndustrialRevolution of 40 China also envisaged the integration of markets andconnecting countries along its Belt and Road with a network of next-generation digital infrastructure and satellite coverage Against this backdropan Information and Space Silk Road was also stated as one of the subgoals of the BRI that emphasized the agenda of strengthening digitalinfrastructure developing common technology standards and deepeningspace cooperation7

4 Kishan S Rana ldquoChinarsquos Belt and Road Initiative Implications Prospects andConsequences Impact on India and its China Diplomacyrdquo Institute of ChineseStudies September 2017 see httpswwwicsinorguploads2017100648af1a73bb7c5ce9ae949b0f0ac48112pdf accessed 15 March 2019

5 Manoj Joshi ldquoThe Belt and Road Initiative aka One Belt One Road SchemerdquoORF May 2018 see httpswwworfonlineorgwp-contentuploads201801The-Belt-Road-Initiative-pdf accessed 17 March 2019

6 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform CommissionMinistry of Foreign Affairs and Ministry of Commerce of the Peoplersquos Republicof China March 28 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 18 March 2019

7 Chan Jia Hao ldquoChinarsquos Digital Silk Road A Game Changer for Asian EconomiesrdquoThe Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 19 March 2019

8 | AJEY LELE AND KRITIKA ROY

The modern equivalent of the ancient silk route called the lsquoOne Belt OneRoadrsquo (OBOR) encompassed the Silk Road Economic Belt and the Twenty-first Century Maritime Silk Road This English translation of Chinese Silkroad mdash ldquoOBORrdquo mdash was later changed to Belt and Road Initiative (BRI)as the former had attracted several negative interpretations and manyofficials also felt that the perception of a single road as a limited offercould drive the regional partners into competition mode and thereforethe stressing of the numeral ldquoonerdquo had to be avoided8 Moreover theterm ldquoBelt and Roadrdquo would better reflect the projectrsquos numerous clusternetworks and sound more like an inclusive initiative rather than a politicalstrategy9 Even the motive of establishing the digital and space Silk Roadresonates the same factor of inclusive growth and prosperity for allparticipating countries

12 PURPOSE OF THE BRI

Chinarsquos BRI program finds its origin in a number of policyrecommendations emanating from the various ministries of China Thesepolicy suggestions were regarding issues like promoting economiccooperation initiatives the large scale outpouring of Chinarsquos capital reservesso as to stimulate economic demand overseas to mitigate Chinarsquos structuralovercapacity problems and to resolve the issue of plummeting demand10

8 Una Aleksandra and Berzina Cerenkova ldquoBRI Instead of OBOR mdash ChinaEdits the English Name of its Most Ambitious International Projectrdquo LatvijasArpolitikas Instituts July 28 2016 see httpwwwlailvviedoklibri-instead-of-obor-china-edits-the-english-name-of-its-most-ambitious-international-project-532 accessed 20 March 2019

9 Angela Stanzel ldquoChinarsquos Belt and Road new name same doubtsrdquo EuropeanCouncil on Foreign Relations May 19 2017 see httpswwwecfreuarticlecommentary_chinas_belt_and_road_new_name_same_doubts accessed 20March 2019

10 Xu Shanda ldquoChinese Marshall Plan to be supported by 500 billion in foreignexchange reservesrdquo Daily Economic News August 2009 see httpfinancesinacomcnchinahgjj2009080607566578273shtml accessed 22March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 9

These proposals soon caught the attention of the political leadership andafter the 18th CPC National Congress were embraced and incorporatedinto a broader unified initiative called the BRI11

Chinese officials saw the BRI as a means of addressing both the domesticand foreign policy imperatives of China12 When President Xi Jinping tookover power on 14 March 2013 he had evoked his doctrine of the ldquoChinesedreamrdquo and the BRI is in all respects aimed at ldquoorganically linking theChinese dream to the global dreamrdquo Many scholars also see the BRI asthe Chinese Marshall Plan to ldquopromote growth in its poorer but vulnerablewestern regions as well as adjacent and strategic Central Asia or as apivot towards Eurasia in response to Americarsquos rebalance to Asiastrategyrdquo13 The BRIrsquos ambitions have left much room for multiplespeculations However the Chinese government has often discouragedthese descriptions of the BRI and have emphasized voluntary participationand inclusive growth

Nevertheless there are a few key rationales of the BRI that cannot beoverlooked

121 Going Out 20 Step towards Globalisation Integrationand Development

The BRI is commensurate with Chinarsquos out going policy to facilitate itsglobal rise in the international system it also gives Chinese overseas foreigndirect investment a more strategic direction and impetus Initially Chinarsquosrelationships with BRI countries were composed of individual bilateralrelationships but with the introduction of the BRI project theserelationships have come to be positioned in multilateral international relations

11 Richard Ghiasy and Jiayi Zhou ldquoThe Silk Road Economic Belt ConsideringSecurity Implications and EU- China cooperation prospectsrdquo SIPRI February

2017 In Chinese the initiative is called ldquoNamp^Niuml rdquo (literally lsquoone belt one roadrsquo)The English name was changed from One Belt One Road (or OBOR) to thenow widely accepted BRI around 2017

12 Ibid13 See note 3

10 | AJEY LELE AND KRITIKA ROY

within the BRI framework14 The BRI complies with the policyrsquos aim ofintegrating China more deeply into the world economic system while alsopositing China as a leader in that system

President Xi has claimed that 57 countries became active participants inthe BRI with 30 of them formally signing BRI cooperation deals by mid-201615 The country also claims to have established 75 overseas economiccooperation zones in 35 BRI countries16 The ldquoconnectivityrdquo offered bythe BRI is complemented by alternative financial and governance institutionsnamely the New Development Bank Asian Infrastructure InvestmentBank and the Shanghai Cooperation Organization These institutions areenvisaged to reformulate the world to Chinarsquos advantage These new unitsof the international system respond to the needs of urbanisation and reflectthe geopolitical economic and ideological preferences of their founder17

as well as the concept of a ldquoreturn to an Asia-centric order wherein Chinais claiming its rightful place in the current international dynamicsrdquo18 Thoughthere is no denying the fact that the BRI is an ambitious geostrategic initiativeone can nevertheless also see the elements of a new approach to

14 Hideo Ohashi ldquoThe Belt and Road Initiative (BRI) in the context of Chinarsquosopening-up policyrdquo Journal of Contemporary East Asia Studies 2018 see httpswwwtandfonlinecomdoifull1010802476102820181564615 accessed 22March 2019

15 ldquoXi Jinping Highlights Positive Results of lsquoBelt and Roadrsquo Construction inVarious Aspects When Delivering a Speech at Legislative Chamber of the SupremeAssembly of Uzbekistanrdquo Ministry of Foreign Affairs of the Peoplersquos Republicof China June 22 2016 see httpswwwfmprcgovcncecgmbengzgywt1375058htm accessed 24 September 2019

16 Lu Hui ldquoChinarsquos Outbound Direct Investment Surges in Jan-Aprilrdquo XinhuaMay 16 2016 see httpwwwxinhuanetcomenglish2016- 0516c_135363299htm accessed 24 September 2019

17 Hal Brands ldquoChinarsquos Master Plan A Worldwide Web of Institutions-Beijing isbuilding an Interlocking Series of Security Trade and Educational bodies toRival the Westrdquo Bloomberg Opinion 12 June 2018

18 Yu-Wen Chen and Obert Hodzi ldquoThe Great Rejuvenation Chinarsquos Search for aNew lsquoGlobal Orderrsquordquo Institute for Security and Development Policy 2017Sweden

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 7: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

6 | AJEY LELE AND KRITIKA ROY

Digital technology has also given a push to Chinarsquos economy Chinesecompanies are competing successfully worldwide in ICT products andservices and are at the forefront of shaping international standards foremerging technologies In fact the Digital Silk Road project was promotedduring the ldquoBelt and Road CEO Conferencerdquo This conference was thefirst of its kind and had the representation from global Fortune 500companies and other Chinese firms as an indication of their interest Thoughnot much light was shed on the space medium of the BRI nonethelessone cannot be ignorant of the developments on that front This papercomplements the existing literature on BRI while highlighting the need toinvolve the digital and space sector as that allows China to have greaterflexibility to expand both business and influence over the regions of itsinterest Furthermore this paper underscores the likely implications in theforeseeable future of Chinarsquos Digital and Space expansion in economicgeopolitical technological security and geostrategic dimensions The paperalso explores the likely implications and learnings for India The paperconcludes by recommending a balanced approach that allows mutualbenefit and growth for all the BRI as well as non-BRI states

11 BACKGROUND

The BRI is the reincarnation of the ancient silk route which was a traderoute connecting China to Europe through land and sea routes The ancientsilk route derived its name from silk mdash the major product that was tradedacross the route Trade via the silk route also included a huge network ofstrategically located trading posts markets and thoroughfares designedto streamline the transport exchange distribution and storage of silkother and goods3 Besides trade this route also opened the gate for theexchange of philosophy religious beliefs science language and culture

3 ldquoAbout the Silk Roadrdquo United Nations Educational Scientific and CulturalOrganization see httpsenunescoorgsilkroadabout-silk-road accessed 15March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 7

The idea of the new silk route was first floated by President Xi Jinpingduring a visit to Kazakhstan in 20134 Following the announcement anaction plan was released in 2015 by the Ministry of Foreign Affairs andthe National Development and Reform Commission Plan laid out by theMinistry of Commerce gave more clarity to the proposed idea5 This planemphasized on the mission as well as the vision of the BRI to develop anefficient and secure network of land sea and air passages on the basis ofldquomutual trust equality and mutual benefits openness inclusiveness andmutual learning and win-win cooperationrdquo6

Additionally it is important to note that the notion of connectivity hasundergone a tremendous change in the twenty first century It is no longerlimited to roads rails and sea rather it is the virtual connectivity thatfacilitates the functioning of all three in real time In the era of the IndustrialRevolution of 40 China also envisaged the integration of markets andconnecting countries along its Belt and Road with a network of next-generation digital infrastructure and satellite coverage Against this backdropan Information and Space Silk Road was also stated as one of the subgoals of the BRI that emphasized the agenda of strengthening digitalinfrastructure developing common technology standards and deepeningspace cooperation7

4 Kishan S Rana ldquoChinarsquos Belt and Road Initiative Implications Prospects andConsequences Impact on India and its China Diplomacyrdquo Institute of ChineseStudies September 2017 see httpswwwicsinorguploads2017100648af1a73bb7c5ce9ae949b0f0ac48112pdf accessed 15 March 2019

5 Manoj Joshi ldquoThe Belt and Road Initiative aka One Belt One Road SchemerdquoORF May 2018 see httpswwworfonlineorgwp-contentuploads201801The-Belt-Road-Initiative-pdf accessed 17 March 2019

6 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform CommissionMinistry of Foreign Affairs and Ministry of Commerce of the Peoplersquos Republicof China March 28 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 18 March 2019

7 Chan Jia Hao ldquoChinarsquos Digital Silk Road A Game Changer for Asian EconomiesrdquoThe Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 19 March 2019

8 | AJEY LELE AND KRITIKA ROY

The modern equivalent of the ancient silk route called the lsquoOne Belt OneRoadrsquo (OBOR) encompassed the Silk Road Economic Belt and the Twenty-first Century Maritime Silk Road This English translation of Chinese Silkroad mdash ldquoOBORrdquo mdash was later changed to Belt and Road Initiative (BRI)as the former had attracted several negative interpretations and manyofficials also felt that the perception of a single road as a limited offercould drive the regional partners into competition mode and thereforethe stressing of the numeral ldquoonerdquo had to be avoided8 Moreover theterm ldquoBelt and Roadrdquo would better reflect the projectrsquos numerous clusternetworks and sound more like an inclusive initiative rather than a politicalstrategy9 Even the motive of establishing the digital and space Silk Roadresonates the same factor of inclusive growth and prosperity for allparticipating countries

12 PURPOSE OF THE BRI

Chinarsquos BRI program finds its origin in a number of policyrecommendations emanating from the various ministries of China Thesepolicy suggestions were regarding issues like promoting economiccooperation initiatives the large scale outpouring of Chinarsquos capital reservesso as to stimulate economic demand overseas to mitigate Chinarsquos structuralovercapacity problems and to resolve the issue of plummeting demand10

8 Una Aleksandra and Berzina Cerenkova ldquoBRI Instead of OBOR mdash ChinaEdits the English Name of its Most Ambitious International Projectrdquo LatvijasArpolitikas Instituts July 28 2016 see httpwwwlailvviedoklibri-instead-of-obor-china-edits-the-english-name-of-its-most-ambitious-international-project-532 accessed 20 March 2019

9 Angela Stanzel ldquoChinarsquos Belt and Road new name same doubtsrdquo EuropeanCouncil on Foreign Relations May 19 2017 see httpswwwecfreuarticlecommentary_chinas_belt_and_road_new_name_same_doubts accessed 20March 2019

10 Xu Shanda ldquoChinese Marshall Plan to be supported by 500 billion in foreignexchange reservesrdquo Daily Economic News August 2009 see httpfinancesinacomcnchinahgjj2009080607566578273shtml accessed 22March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 9

These proposals soon caught the attention of the political leadership andafter the 18th CPC National Congress were embraced and incorporatedinto a broader unified initiative called the BRI11

Chinese officials saw the BRI as a means of addressing both the domesticand foreign policy imperatives of China12 When President Xi Jinping tookover power on 14 March 2013 he had evoked his doctrine of the ldquoChinesedreamrdquo and the BRI is in all respects aimed at ldquoorganically linking theChinese dream to the global dreamrdquo Many scholars also see the BRI asthe Chinese Marshall Plan to ldquopromote growth in its poorer but vulnerablewestern regions as well as adjacent and strategic Central Asia or as apivot towards Eurasia in response to Americarsquos rebalance to Asiastrategyrdquo13 The BRIrsquos ambitions have left much room for multiplespeculations However the Chinese government has often discouragedthese descriptions of the BRI and have emphasized voluntary participationand inclusive growth

Nevertheless there are a few key rationales of the BRI that cannot beoverlooked

121 Going Out 20 Step towards Globalisation Integrationand Development

The BRI is commensurate with Chinarsquos out going policy to facilitate itsglobal rise in the international system it also gives Chinese overseas foreigndirect investment a more strategic direction and impetus Initially Chinarsquosrelationships with BRI countries were composed of individual bilateralrelationships but with the introduction of the BRI project theserelationships have come to be positioned in multilateral international relations

11 Richard Ghiasy and Jiayi Zhou ldquoThe Silk Road Economic Belt ConsideringSecurity Implications and EU- China cooperation prospectsrdquo SIPRI February

2017 In Chinese the initiative is called ldquoNamp^Niuml rdquo (literally lsquoone belt one roadrsquo)The English name was changed from One Belt One Road (or OBOR) to thenow widely accepted BRI around 2017

12 Ibid13 See note 3

10 | AJEY LELE AND KRITIKA ROY

within the BRI framework14 The BRI complies with the policyrsquos aim ofintegrating China more deeply into the world economic system while alsopositing China as a leader in that system

President Xi has claimed that 57 countries became active participants inthe BRI with 30 of them formally signing BRI cooperation deals by mid-201615 The country also claims to have established 75 overseas economiccooperation zones in 35 BRI countries16 The ldquoconnectivityrdquo offered bythe BRI is complemented by alternative financial and governance institutionsnamely the New Development Bank Asian Infrastructure InvestmentBank and the Shanghai Cooperation Organization These institutions areenvisaged to reformulate the world to Chinarsquos advantage These new unitsof the international system respond to the needs of urbanisation and reflectthe geopolitical economic and ideological preferences of their founder17

as well as the concept of a ldquoreturn to an Asia-centric order wherein Chinais claiming its rightful place in the current international dynamicsrdquo18 Thoughthere is no denying the fact that the BRI is an ambitious geostrategic initiativeone can nevertheless also see the elements of a new approach to

14 Hideo Ohashi ldquoThe Belt and Road Initiative (BRI) in the context of Chinarsquosopening-up policyrdquo Journal of Contemporary East Asia Studies 2018 see httpswwwtandfonlinecomdoifull1010802476102820181564615 accessed 22March 2019

15 ldquoXi Jinping Highlights Positive Results of lsquoBelt and Roadrsquo Construction inVarious Aspects When Delivering a Speech at Legislative Chamber of the SupremeAssembly of Uzbekistanrdquo Ministry of Foreign Affairs of the Peoplersquos Republicof China June 22 2016 see httpswwwfmprcgovcncecgmbengzgywt1375058htm accessed 24 September 2019

16 Lu Hui ldquoChinarsquos Outbound Direct Investment Surges in Jan-Aprilrdquo XinhuaMay 16 2016 see httpwwwxinhuanetcomenglish2016- 0516c_135363299htm accessed 24 September 2019

17 Hal Brands ldquoChinarsquos Master Plan A Worldwide Web of Institutions-Beijing isbuilding an Interlocking Series of Security Trade and Educational bodies toRival the Westrdquo Bloomberg Opinion 12 June 2018

18 Yu-Wen Chen and Obert Hodzi ldquoThe Great Rejuvenation Chinarsquos Search for aNew lsquoGlobal Orderrsquordquo Institute for Security and Development Policy 2017Sweden

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 8: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 7

The idea of the new silk route was first floated by President Xi Jinpingduring a visit to Kazakhstan in 20134 Following the announcement anaction plan was released in 2015 by the Ministry of Foreign Affairs andthe National Development and Reform Commission Plan laid out by theMinistry of Commerce gave more clarity to the proposed idea5 This planemphasized on the mission as well as the vision of the BRI to develop anefficient and secure network of land sea and air passages on the basis ofldquomutual trust equality and mutual benefits openness inclusiveness andmutual learning and win-win cooperationrdquo6

Additionally it is important to note that the notion of connectivity hasundergone a tremendous change in the twenty first century It is no longerlimited to roads rails and sea rather it is the virtual connectivity thatfacilitates the functioning of all three in real time In the era of the IndustrialRevolution of 40 China also envisaged the integration of markets andconnecting countries along its Belt and Road with a network of next-generation digital infrastructure and satellite coverage Against this backdropan Information and Space Silk Road was also stated as one of the subgoals of the BRI that emphasized the agenda of strengthening digitalinfrastructure developing common technology standards and deepeningspace cooperation7

4 Kishan S Rana ldquoChinarsquos Belt and Road Initiative Implications Prospects andConsequences Impact on India and its China Diplomacyrdquo Institute of ChineseStudies September 2017 see httpswwwicsinorguploads2017100648af1a73bb7c5ce9ae949b0f0ac48112pdf accessed 15 March 2019

5 Manoj Joshi ldquoThe Belt and Road Initiative aka One Belt One Road SchemerdquoORF May 2018 see httpswwworfonlineorgwp-contentuploads201801The-Belt-Road-Initiative-pdf accessed 17 March 2019

6 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform CommissionMinistry of Foreign Affairs and Ministry of Commerce of the Peoplersquos Republicof China March 28 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 18 March 2019

7 Chan Jia Hao ldquoChinarsquos Digital Silk Road A Game Changer for Asian EconomiesrdquoThe Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 19 March 2019

8 | AJEY LELE AND KRITIKA ROY

The modern equivalent of the ancient silk route called the lsquoOne Belt OneRoadrsquo (OBOR) encompassed the Silk Road Economic Belt and the Twenty-first Century Maritime Silk Road This English translation of Chinese Silkroad mdash ldquoOBORrdquo mdash was later changed to Belt and Road Initiative (BRI)as the former had attracted several negative interpretations and manyofficials also felt that the perception of a single road as a limited offercould drive the regional partners into competition mode and thereforethe stressing of the numeral ldquoonerdquo had to be avoided8 Moreover theterm ldquoBelt and Roadrdquo would better reflect the projectrsquos numerous clusternetworks and sound more like an inclusive initiative rather than a politicalstrategy9 Even the motive of establishing the digital and space Silk Roadresonates the same factor of inclusive growth and prosperity for allparticipating countries

12 PURPOSE OF THE BRI

Chinarsquos BRI program finds its origin in a number of policyrecommendations emanating from the various ministries of China Thesepolicy suggestions were regarding issues like promoting economiccooperation initiatives the large scale outpouring of Chinarsquos capital reservesso as to stimulate economic demand overseas to mitigate Chinarsquos structuralovercapacity problems and to resolve the issue of plummeting demand10

8 Una Aleksandra and Berzina Cerenkova ldquoBRI Instead of OBOR mdash ChinaEdits the English Name of its Most Ambitious International Projectrdquo LatvijasArpolitikas Instituts July 28 2016 see httpwwwlailvviedoklibri-instead-of-obor-china-edits-the-english-name-of-its-most-ambitious-international-project-532 accessed 20 March 2019

9 Angela Stanzel ldquoChinarsquos Belt and Road new name same doubtsrdquo EuropeanCouncil on Foreign Relations May 19 2017 see httpswwwecfreuarticlecommentary_chinas_belt_and_road_new_name_same_doubts accessed 20March 2019

10 Xu Shanda ldquoChinese Marshall Plan to be supported by 500 billion in foreignexchange reservesrdquo Daily Economic News August 2009 see httpfinancesinacomcnchinahgjj2009080607566578273shtml accessed 22March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 9

These proposals soon caught the attention of the political leadership andafter the 18th CPC National Congress were embraced and incorporatedinto a broader unified initiative called the BRI11

Chinese officials saw the BRI as a means of addressing both the domesticand foreign policy imperatives of China12 When President Xi Jinping tookover power on 14 March 2013 he had evoked his doctrine of the ldquoChinesedreamrdquo and the BRI is in all respects aimed at ldquoorganically linking theChinese dream to the global dreamrdquo Many scholars also see the BRI asthe Chinese Marshall Plan to ldquopromote growth in its poorer but vulnerablewestern regions as well as adjacent and strategic Central Asia or as apivot towards Eurasia in response to Americarsquos rebalance to Asiastrategyrdquo13 The BRIrsquos ambitions have left much room for multiplespeculations However the Chinese government has often discouragedthese descriptions of the BRI and have emphasized voluntary participationand inclusive growth

Nevertheless there are a few key rationales of the BRI that cannot beoverlooked

121 Going Out 20 Step towards Globalisation Integrationand Development

The BRI is commensurate with Chinarsquos out going policy to facilitate itsglobal rise in the international system it also gives Chinese overseas foreigndirect investment a more strategic direction and impetus Initially Chinarsquosrelationships with BRI countries were composed of individual bilateralrelationships but with the introduction of the BRI project theserelationships have come to be positioned in multilateral international relations

11 Richard Ghiasy and Jiayi Zhou ldquoThe Silk Road Economic Belt ConsideringSecurity Implications and EU- China cooperation prospectsrdquo SIPRI February

2017 In Chinese the initiative is called ldquoNamp^Niuml rdquo (literally lsquoone belt one roadrsquo)The English name was changed from One Belt One Road (or OBOR) to thenow widely accepted BRI around 2017

12 Ibid13 See note 3

10 | AJEY LELE AND KRITIKA ROY

within the BRI framework14 The BRI complies with the policyrsquos aim ofintegrating China more deeply into the world economic system while alsopositing China as a leader in that system

President Xi has claimed that 57 countries became active participants inthe BRI with 30 of them formally signing BRI cooperation deals by mid-201615 The country also claims to have established 75 overseas economiccooperation zones in 35 BRI countries16 The ldquoconnectivityrdquo offered bythe BRI is complemented by alternative financial and governance institutionsnamely the New Development Bank Asian Infrastructure InvestmentBank and the Shanghai Cooperation Organization These institutions areenvisaged to reformulate the world to Chinarsquos advantage These new unitsof the international system respond to the needs of urbanisation and reflectthe geopolitical economic and ideological preferences of their founder17

as well as the concept of a ldquoreturn to an Asia-centric order wherein Chinais claiming its rightful place in the current international dynamicsrdquo18 Thoughthere is no denying the fact that the BRI is an ambitious geostrategic initiativeone can nevertheless also see the elements of a new approach to

14 Hideo Ohashi ldquoThe Belt and Road Initiative (BRI) in the context of Chinarsquosopening-up policyrdquo Journal of Contemporary East Asia Studies 2018 see httpswwwtandfonlinecomdoifull1010802476102820181564615 accessed 22March 2019

15 ldquoXi Jinping Highlights Positive Results of lsquoBelt and Roadrsquo Construction inVarious Aspects When Delivering a Speech at Legislative Chamber of the SupremeAssembly of Uzbekistanrdquo Ministry of Foreign Affairs of the Peoplersquos Republicof China June 22 2016 see httpswwwfmprcgovcncecgmbengzgywt1375058htm accessed 24 September 2019

16 Lu Hui ldquoChinarsquos Outbound Direct Investment Surges in Jan-Aprilrdquo XinhuaMay 16 2016 see httpwwwxinhuanetcomenglish2016- 0516c_135363299htm accessed 24 September 2019

17 Hal Brands ldquoChinarsquos Master Plan A Worldwide Web of Institutions-Beijing isbuilding an Interlocking Series of Security Trade and Educational bodies toRival the Westrdquo Bloomberg Opinion 12 June 2018

18 Yu-Wen Chen and Obert Hodzi ldquoThe Great Rejuvenation Chinarsquos Search for aNew lsquoGlobal Orderrsquordquo Institute for Security and Development Policy 2017Sweden

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 9: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

8 | AJEY LELE AND KRITIKA ROY

The modern equivalent of the ancient silk route called the lsquoOne Belt OneRoadrsquo (OBOR) encompassed the Silk Road Economic Belt and the Twenty-first Century Maritime Silk Road This English translation of Chinese Silkroad mdash ldquoOBORrdquo mdash was later changed to Belt and Road Initiative (BRI)as the former had attracted several negative interpretations and manyofficials also felt that the perception of a single road as a limited offercould drive the regional partners into competition mode and thereforethe stressing of the numeral ldquoonerdquo had to be avoided8 Moreover theterm ldquoBelt and Roadrdquo would better reflect the projectrsquos numerous clusternetworks and sound more like an inclusive initiative rather than a politicalstrategy9 Even the motive of establishing the digital and space Silk Roadresonates the same factor of inclusive growth and prosperity for allparticipating countries

12 PURPOSE OF THE BRI

Chinarsquos BRI program finds its origin in a number of policyrecommendations emanating from the various ministries of China Thesepolicy suggestions were regarding issues like promoting economiccooperation initiatives the large scale outpouring of Chinarsquos capital reservesso as to stimulate economic demand overseas to mitigate Chinarsquos structuralovercapacity problems and to resolve the issue of plummeting demand10

8 Una Aleksandra and Berzina Cerenkova ldquoBRI Instead of OBOR mdash ChinaEdits the English Name of its Most Ambitious International Projectrdquo LatvijasArpolitikas Instituts July 28 2016 see httpwwwlailvviedoklibri-instead-of-obor-china-edits-the-english-name-of-its-most-ambitious-international-project-532 accessed 20 March 2019

9 Angela Stanzel ldquoChinarsquos Belt and Road new name same doubtsrdquo EuropeanCouncil on Foreign Relations May 19 2017 see httpswwwecfreuarticlecommentary_chinas_belt_and_road_new_name_same_doubts accessed 20March 2019

10 Xu Shanda ldquoChinese Marshall Plan to be supported by 500 billion in foreignexchange reservesrdquo Daily Economic News August 2009 see httpfinancesinacomcnchinahgjj2009080607566578273shtml accessed 22March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 9

These proposals soon caught the attention of the political leadership andafter the 18th CPC National Congress were embraced and incorporatedinto a broader unified initiative called the BRI11

Chinese officials saw the BRI as a means of addressing both the domesticand foreign policy imperatives of China12 When President Xi Jinping tookover power on 14 March 2013 he had evoked his doctrine of the ldquoChinesedreamrdquo and the BRI is in all respects aimed at ldquoorganically linking theChinese dream to the global dreamrdquo Many scholars also see the BRI asthe Chinese Marshall Plan to ldquopromote growth in its poorer but vulnerablewestern regions as well as adjacent and strategic Central Asia or as apivot towards Eurasia in response to Americarsquos rebalance to Asiastrategyrdquo13 The BRIrsquos ambitions have left much room for multiplespeculations However the Chinese government has often discouragedthese descriptions of the BRI and have emphasized voluntary participationand inclusive growth

Nevertheless there are a few key rationales of the BRI that cannot beoverlooked

121 Going Out 20 Step towards Globalisation Integrationand Development

The BRI is commensurate with Chinarsquos out going policy to facilitate itsglobal rise in the international system it also gives Chinese overseas foreigndirect investment a more strategic direction and impetus Initially Chinarsquosrelationships with BRI countries were composed of individual bilateralrelationships but with the introduction of the BRI project theserelationships have come to be positioned in multilateral international relations

11 Richard Ghiasy and Jiayi Zhou ldquoThe Silk Road Economic Belt ConsideringSecurity Implications and EU- China cooperation prospectsrdquo SIPRI February

2017 In Chinese the initiative is called ldquoNamp^Niuml rdquo (literally lsquoone belt one roadrsquo)The English name was changed from One Belt One Road (or OBOR) to thenow widely accepted BRI around 2017

12 Ibid13 See note 3

10 | AJEY LELE AND KRITIKA ROY

within the BRI framework14 The BRI complies with the policyrsquos aim ofintegrating China more deeply into the world economic system while alsopositing China as a leader in that system

President Xi has claimed that 57 countries became active participants inthe BRI with 30 of them formally signing BRI cooperation deals by mid-201615 The country also claims to have established 75 overseas economiccooperation zones in 35 BRI countries16 The ldquoconnectivityrdquo offered bythe BRI is complemented by alternative financial and governance institutionsnamely the New Development Bank Asian Infrastructure InvestmentBank and the Shanghai Cooperation Organization These institutions areenvisaged to reformulate the world to Chinarsquos advantage These new unitsof the international system respond to the needs of urbanisation and reflectthe geopolitical economic and ideological preferences of their founder17

as well as the concept of a ldquoreturn to an Asia-centric order wherein Chinais claiming its rightful place in the current international dynamicsrdquo18 Thoughthere is no denying the fact that the BRI is an ambitious geostrategic initiativeone can nevertheless also see the elements of a new approach to

14 Hideo Ohashi ldquoThe Belt and Road Initiative (BRI) in the context of Chinarsquosopening-up policyrdquo Journal of Contemporary East Asia Studies 2018 see httpswwwtandfonlinecomdoifull1010802476102820181564615 accessed 22March 2019

15 ldquoXi Jinping Highlights Positive Results of lsquoBelt and Roadrsquo Construction inVarious Aspects When Delivering a Speech at Legislative Chamber of the SupremeAssembly of Uzbekistanrdquo Ministry of Foreign Affairs of the Peoplersquos Republicof China June 22 2016 see httpswwwfmprcgovcncecgmbengzgywt1375058htm accessed 24 September 2019

16 Lu Hui ldquoChinarsquos Outbound Direct Investment Surges in Jan-Aprilrdquo XinhuaMay 16 2016 see httpwwwxinhuanetcomenglish2016- 0516c_135363299htm accessed 24 September 2019

17 Hal Brands ldquoChinarsquos Master Plan A Worldwide Web of Institutions-Beijing isbuilding an Interlocking Series of Security Trade and Educational bodies toRival the Westrdquo Bloomberg Opinion 12 June 2018

18 Yu-Wen Chen and Obert Hodzi ldquoThe Great Rejuvenation Chinarsquos Search for aNew lsquoGlobal Orderrsquordquo Institute for Security and Development Policy 2017Sweden

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 10: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 9

These proposals soon caught the attention of the political leadership andafter the 18th CPC National Congress were embraced and incorporatedinto a broader unified initiative called the BRI11

Chinese officials saw the BRI as a means of addressing both the domesticand foreign policy imperatives of China12 When President Xi Jinping tookover power on 14 March 2013 he had evoked his doctrine of the ldquoChinesedreamrdquo and the BRI is in all respects aimed at ldquoorganically linking theChinese dream to the global dreamrdquo Many scholars also see the BRI asthe Chinese Marshall Plan to ldquopromote growth in its poorer but vulnerablewestern regions as well as adjacent and strategic Central Asia or as apivot towards Eurasia in response to Americarsquos rebalance to Asiastrategyrdquo13 The BRIrsquos ambitions have left much room for multiplespeculations However the Chinese government has often discouragedthese descriptions of the BRI and have emphasized voluntary participationand inclusive growth

Nevertheless there are a few key rationales of the BRI that cannot beoverlooked

121 Going Out 20 Step towards Globalisation Integrationand Development

The BRI is commensurate with Chinarsquos out going policy to facilitate itsglobal rise in the international system it also gives Chinese overseas foreigndirect investment a more strategic direction and impetus Initially Chinarsquosrelationships with BRI countries were composed of individual bilateralrelationships but with the introduction of the BRI project theserelationships have come to be positioned in multilateral international relations

11 Richard Ghiasy and Jiayi Zhou ldquoThe Silk Road Economic Belt ConsideringSecurity Implications and EU- China cooperation prospectsrdquo SIPRI February

2017 In Chinese the initiative is called ldquoNamp^Niuml rdquo (literally lsquoone belt one roadrsquo)The English name was changed from One Belt One Road (or OBOR) to thenow widely accepted BRI around 2017

12 Ibid13 See note 3

10 | AJEY LELE AND KRITIKA ROY

within the BRI framework14 The BRI complies with the policyrsquos aim ofintegrating China more deeply into the world economic system while alsopositing China as a leader in that system

President Xi has claimed that 57 countries became active participants inthe BRI with 30 of them formally signing BRI cooperation deals by mid-201615 The country also claims to have established 75 overseas economiccooperation zones in 35 BRI countries16 The ldquoconnectivityrdquo offered bythe BRI is complemented by alternative financial and governance institutionsnamely the New Development Bank Asian Infrastructure InvestmentBank and the Shanghai Cooperation Organization These institutions areenvisaged to reformulate the world to Chinarsquos advantage These new unitsof the international system respond to the needs of urbanisation and reflectthe geopolitical economic and ideological preferences of their founder17

as well as the concept of a ldquoreturn to an Asia-centric order wherein Chinais claiming its rightful place in the current international dynamicsrdquo18 Thoughthere is no denying the fact that the BRI is an ambitious geostrategic initiativeone can nevertheless also see the elements of a new approach to

14 Hideo Ohashi ldquoThe Belt and Road Initiative (BRI) in the context of Chinarsquosopening-up policyrdquo Journal of Contemporary East Asia Studies 2018 see httpswwwtandfonlinecomdoifull1010802476102820181564615 accessed 22March 2019

15 ldquoXi Jinping Highlights Positive Results of lsquoBelt and Roadrsquo Construction inVarious Aspects When Delivering a Speech at Legislative Chamber of the SupremeAssembly of Uzbekistanrdquo Ministry of Foreign Affairs of the Peoplersquos Republicof China June 22 2016 see httpswwwfmprcgovcncecgmbengzgywt1375058htm accessed 24 September 2019

16 Lu Hui ldquoChinarsquos Outbound Direct Investment Surges in Jan-Aprilrdquo XinhuaMay 16 2016 see httpwwwxinhuanetcomenglish2016- 0516c_135363299htm accessed 24 September 2019

17 Hal Brands ldquoChinarsquos Master Plan A Worldwide Web of Institutions-Beijing isbuilding an Interlocking Series of Security Trade and Educational bodies toRival the Westrdquo Bloomberg Opinion 12 June 2018

18 Yu-Wen Chen and Obert Hodzi ldquoThe Great Rejuvenation Chinarsquos Search for aNew lsquoGlobal Orderrsquordquo Institute for Security and Development Policy 2017Sweden

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 11: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

10 | AJEY LELE AND KRITIKA ROY

within the BRI framework14 The BRI complies with the policyrsquos aim ofintegrating China more deeply into the world economic system while alsopositing China as a leader in that system

President Xi has claimed that 57 countries became active participants inthe BRI with 30 of them formally signing BRI cooperation deals by mid-201615 The country also claims to have established 75 overseas economiccooperation zones in 35 BRI countries16 The ldquoconnectivityrdquo offered bythe BRI is complemented by alternative financial and governance institutionsnamely the New Development Bank Asian Infrastructure InvestmentBank and the Shanghai Cooperation Organization These institutions areenvisaged to reformulate the world to Chinarsquos advantage These new unitsof the international system respond to the needs of urbanisation and reflectthe geopolitical economic and ideological preferences of their founder17

as well as the concept of a ldquoreturn to an Asia-centric order wherein Chinais claiming its rightful place in the current international dynamicsrdquo18 Thoughthere is no denying the fact that the BRI is an ambitious geostrategic initiativeone can nevertheless also see the elements of a new approach to

14 Hideo Ohashi ldquoThe Belt and Road Initiative (BRI) in the context of Chinarsquosopening-up policyrdquo Journal of Contemporary East Asia Studies 2018 see httpswwwtandfonlinecomdoifull1010802476102820181564615 accessed 22March 2019

15 ldquoXi Jinping Highlights Positive Results of lsquoBelt and Roadrsquo Construction inVarious Aspects When Delivering a Speech at Legislative Chamber of the SupremeAssembly of Uzbekistanrdquo Ministry of Foreign Affairs of the Peoplersquos Republicof China June 22 2016 see httpswwwfmprcgovcncecgmbengzgywt1375058htm accessed 24 September 2019

16 Lu Hui ldquoChinarsquos Outbound Direct Investment Surges in Jan-Aprilrdquo XinhuaMay 16 2016 see httpwwwxinhuanetcomenglish2016- 0516c_135363299htm accessed 24 September 2019

17 Hal Brands ldquoChinarsquos Master Plan A Worldwide Web of Institutions-Beijing isbuilding an Interlocking Series of Security Trade and Educational bodies toRival the Westrdquo Bloomberg Opinion 12 June 2018

18 Yu-Wen Chen and Obert Hodzi ldquoThe Great Rejuvenation Chinarsquos Search for aNew lsquoGlobal Orderrsquordquo Institute for Security and Development Policy 2017Sweden

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 12: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 11

international cooperation and development In essence the BRI may wellbe a long term strategy of the PRC to create a negotiated and an alternativeorder in the world economy as well as politics19

122 BRI as a Tool to Meet Domestic Economic Targets NewMarkets and Balancing Growth

In recent years China has been facing both the wrath of industrialovercapacity and a need to meet domestic economic targets The BRIbecame a means to expand Chinarsquos market beyond its borders Solvingthe massive excess capacity in many industries such as steel and cementwas one of the major economic priorities of the Chinese governmentSimilarly there was a massive excess in other active industries Overcapacitynot only makes a countryrsquos financial system more vulnerable but also increasesdebt levels The BRI was an economically viable option to effectivelycounter this situation This was also an avenue for state owned enterprises(SOErsquos) to spread their economic influence far and wide as these enterpriseswere also under pressure back home to clean up their debt overhang20

Although the 4 trillion RMB investment plan under the Hu-Wen leadershipdid help to stabilise the Chinese economy during the economic crisis of200821 However the issue of slow domestic growth accentuated bychronic surplus production capacity and slump in Chinese exports wasstill not solved following the crisis By the end of 2012 the rate of thecapacity utilization of Chinarsquos shipbuilding industries electrolytic aluminiumsteel flat glass and cement was all less than 75 per cent inducing severeimplications like increasing non-performing assets declining profits andmass unemployment In 2013 the State Council came out with a ldquoguidingopinionrdquo that advocated an active expansion of the external market as asolution22 The objective has always been to strengthen Chinarsquos own

19 Frank Holmes ldquoChinarsquos Belt and Road Initiative Opens Up UnprecedentedOpportunitiesrdquo Forbes 4 September 2018

20 See note 921 Hong Shen ldquoBuilding a Digital Silk Road Situating the Internetrdquo International

Journal of Communication 2018 Vol 1222 See note 3

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 13: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

12 | AJEY LELE AND KRITIKA ROY

development and economic ldquoresiliencerdquo by galvanizing regional demandfor industrial and agricultural products23 It was against this backdrop thatthe BRI was proposed

123 BRI A Blend of Connectivity and Strategy

Connectivity has been the mainstay of the project however the growthof the internet and space sector has also become important features ofthe initiative As of now the geographic scope of the initiative remainsvague and indeterminate Most countries have on occasion been includedwithin its central perimeter but the list was never exclusive and nor was iteven confirmed as coming from an official source24 Nonetheless theBRI can be seen as the umbrella that brings all the Chinese overseas projectsunder one ambit Many of these initiatives were already in place beforethe Belt and Road concept was fully articulated but they have often foldedneatly into the overall plan25 For instance the Chinese foray into the SouthAsian region where it has been conducting multi-dimensional cooperationin all fields including economic energy and digital sectors These bilateralinitiatives in the region mdash often seen as the ldquostring of pearlsrdquo phenomenamdash were started way before the BRI was officially launched26 China investedin developing various shipping facilities constructing deep water portsnaval bases and pipeline projects Chinese state owned corporations haveprojects with countries along the South Asian Region particularly in SriLanka (Hambantota) Myanmar (Kyaukpyu) Bangladesh (Chittagong) and

23 M Zhao ldquoChinarsquos New Silk Road initiativerdquo Instituto Affari Internazionali(IAI) Working Papers 15ndash37 October 2015

24 Bruno Maccedilatildees Belt and Road A Chinese World Order Penguin Random House2019 India p 24

25 ldquoChinarsquos Belt and Road Initiative and Aviationrdquo CAPA July 26 2018 see httpscentreforaviationcomanalysisairline-leaderchinas-belt-and-road-initiative-and-aviation-427350 accessed 23 March 2019

26 Ashlyn Anderson and Alyssa Ayres ldquoEconomics of Influence China and Indiain South Asiardquo Council on Foreign Relations August 2015 see httpswwwcfrorgexpert-briefeconomics-influence-china-and-india-south-asiaaccessed 24 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 14: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 13

Pakistan (Gwadar)27 Such an arrangement should not only be seen as away to reduce Chinarsquos dependence on shipping routes through the MalaccaStrait ldquochokepointrdquo but also a pre-BRI initiative

Since its official announcement the BRI has grown to include activities inthe realm of digital and outer space The following section provides adetailed analysis of the rationale and implication for Chinarsquos digital andspace BRI

27 Ashley S Townshend ldquoChinarsquos String of Pearlsrdquo The Outlook September 2011see httpswwwoutlookindiacomwebsitestorychinas-string-of-pearls278432 accessed 24 March 2019

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 15: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

14 | AJEY LELE AND KRITIKA ROY

21 DIGITAL SILK ROAD

Chinarsquos science and technology sector has evolved through several phasessince the establishment of the Peoplersquos Republic in 1949 In the first phaseuntil 1959 technology supported the creation of heavy industry the secondup through the end of the Cultural Revolution in 1976 saw economicstagnation and the ideological domination of technology projects28 Athird phase under reforms launched by Deng Xiaoping and carriedforward by Jiang Zemin until 2001 emphasized the setting up of anindependent research base and the gradual shift to market orientedproduct-driven research Since 2002 Chinese policy has increasingly backedhigh technology industrialization and has promoted an innovation driveneconomy Chinarsquos intelligent investments in the technological field havehelped the country grow internally as well as to spread its technologicalprowess China accounts for over 40 per cent of global transactions andthe penetration of e-commerce (in per cent of total retail sales) standsnow at 15 per cent29 China also accounts for 32 per cent of global ICTgoods exports and 6 per cent in ICT services exports

Digital connectivity is a new geopolitical frontier where smart mobilitygrids and governance is anticipated to combine information andcommunication technology (ICT) with the social political and economic

SECTION II

28 Joel R Campbell ldquoBecoming a Techno-Industrial Power Chinese Science andTechnology Policyrdquo Brookings Institute April 2013 see httpswwwbrookingseduwp-contentuploads20160629-science-technology-policy-china-campbellpdf accessed 26 June 2018

29 Longmei Zhang and Sally Chen ldquoChinarsquos Digital Economy Opportunities andRisksrdquo IMF Working Paper January 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 16: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 15

design of the New Silk Road Although the concept of digital connectivityin the BRI has been making good progress during last few years it is lessnoticed since the focus remains on high-profile physical infrastructureprojects like ports and railways and other associated economic politicaland strategic aspects Chinese plans to dominate the global digital race relyon both centrally guided economic development and the political aspirationsof global power projection The rise of a few Chinese internet giants inboth the domestic and global markets has added impetus to the policydiscourses on building the ldquodigital silk roadrdquo Chinarsquos Ministry of ForeignAffairs the National Development and Reform Commission and theMinistry of Commerce came out with a white paper in 2015 that notesthat

[China] should jointly advance the construction of cross-borderoptical cables and other communications trunk line networks hellip and createan information Silk Road hellip build bilateral cross-border opticalcable networks at a quicker pace plan transcontinental submarineoptical cable projects and improve spatial (satellite) informationpassageways to expand information exchanges and cooperation30

In July 2015 the State Council came out with the ldquoGuideline on BoostingInternational Cooperation in Production Capacity and EquipmentManufacturingrdquo wherein the telecommunications industry was listed asone of the 13 major sectors that need to increase ldquointernational industrialcooperationrdquo31

In June 2016 the Chinese President Xi Jinping charted his vision for Chinato become the leading player in science and technology globally While

30 ldquoVision and Actions on Jointly Building Silk Road Economic Belt and 21st-Century Maritime Silk Roadrdquo National Development and Reform Commission(NDRC) Peoplersquos Republic of China March 2015 see httpenndrcgovcnnewsrelease201503t20150330_669367html accessed 27 March 2019

31 ldquoOutline of the Thirteenth Five-Year Plan for National Economic and SocialDevelopment of the Peoplersquos Republic of Chinardquo Xinhua News Agency March2017 see httpwwwgovcnxinwen2016-0317content_5054992htmaccessed 28 March 2019

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 17: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

16 | AJEY LELE AND KRITIKA ROY

speaking at the National Congress of the China Association for Scienceand Technology he said that China must be on course to becoming aleading innovator worldwide by 2030 This progress would make Chinastrong and improve the lives of the Chinese people He argued that thegrowth to progress is possible because of scientific innovations realisedin a reasonable amount of time China is found making significant progressin the digital arena in general and specifically in fields like communicationtechnologies quantum field supercomputing and artificial intelligenceIndeed the country is working towards becoming a ldquoglobal innovationand technology hubrdquo for next generation connectivity Additionally in 2016Chinarsquos State Council published the 13th Five Year Plan that had a specificsection on improving internet and telecommunications links across BRIcountries In particular the five year plan pressed upon32

The construction of land and sea cable infrastructure

An Internet Silk Road between China and the Arab States and

The creation of a China-ASEAN information harbour

Significant progress has been made in the construction of China-PakistanChina-Russia China-Kyrgyzstan China-Myanmar cross border fibre opticcables for the smooth transmission of information33 China has also signedcooperation agreements with Tajikistan Afghanistan and Kyrgyzstan onfibre optic cables which represent the practical launch of the Silk RoadFibre Optic Cable project34

Equal emphasis has been laid on innovation and use of new technologiesIn a work report presented to the National Peoplersquos Congress in March2016 Prime Minister Li Keqiang spoke of supply-side structural reforms

32 See note 3133 The Belt and Road Initiative Progress Contributions and Prospects 2019

Office of the Leading Group for Promoting the Belt ad Road Initiative seehttpsengyidaiyilugovcnwcmfilesuploadCMSydylgw201904201904220254037pdf accessed 29 March 2019

34 Ibid

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 18: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 17

which included support for innovative enterprises He emphasised thatinnovation is the primary driver for development and must occupy acentral position in Chinarsquos BRI strategy35 Moreover the country has timeand again stated its ambition of becoming leaders in 5G ArtificialIntelligence (AI) and other disruptive technologies36 Digital BRI could beseen as a stepping stone towards realising their ambition

Speaking at the inaugural session of the BRI forum in May 2017 PresidentXi emphasised the critical role of technology and innovation drivendevelopment by stating

We should pursue innovation-driven development and intensifycooperation in frontier areas such as digital economy artificialintelligence nanotechnology and quantum computing and advancethe development of big data cloud computing and smart cities soas to turn them into a Digital Silk Road of the 21st century37

211 The Political and Economic Vision behind ChinarsquosDigital Rise

The rise of the digital Silk Road reiterates the already known political andeconomic pattern mdash that is slower growth rates and industrial overcapacityChina is banking on the future of the digital economy to bolster its growthChinarsquos venture into ambitious national initiatives such as ldquoMade in China2025rdquo and ldquoInternet Plusrdquo would not only digitalize and technologicallyupgrade its economic base but also deploy national players in information

35 ldquoChina adopts new strategy to refuel growthrdquo Xinhua Insight March 2016 seehttpnewsxinhuanetcomenglish2016-0306c_135160728htm accessed28 March 2019

36 ldquoChina is poised to win the 5G racerdquo EY 2018 see httpswwweycomPublicationvwLUAssetsey-china-is-poised-to-win-the-5g-race-en$FILEey-china-is-poised-to-win-the-5g-race-enpdf accessed 29 March 2019

37 Dennis Pamlin ldquoBelt and Road Initiativersquos new visionrdquo China Daily October2017 see httpglobalchinadailycomcna20171126WS5a276b8ca3107865316d3b97html accessed 29 March 2019

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 19: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

18 | AJEY LELE AND KRITIKA ROY

technology e-commerce and telecommunications to secure access tountapped markets abroad There is no better way to achieve this objectivethan to merge state-led infrastructure development projects with digitalconnectivity38 This not only paves the way for the domestic firms to ventureout but also makes the country the largest beneficiary of the scheme Forinstance in 2015 the Industrial and Commercial Bank of China and theChina Development Bank gave a credit line of 25 billion USD to BhartiAirtel the largest telecom operator in India for its domestic infrastructureprojects Bharti Airtel then outsourced part of its network equipment toHuawei and ZTE thereby giving a boost to the external markets of thetwo Chinese internet giants39 As China digitizes businesses would witnessmassive changes in profit pools and revenue across the global value chainIndeed research by McKinsey Global Institute found that digital forcescan potentially shift and create 10 to 45 per cent of industry revenue inChina by 2030 This is creative destruction on a grand scale mdash one thatldquocan root out inefficiency and vault Chinarsquos economy to new levels ofglobal competitivenessrdquo40

Furthermore the Chinese government is also banking on pushing digitalinnovations within and beyond its borders It has been estimated thatdevelopment in the Internet of Things (IoT) alone could add upto18trillion USD in cumulative GDP for China by 203041 In 2017 the ldquosizeof Chinarsquos market state backing availability of data and societal openness

38 Keshav Kelkar ldquoChina is Building a New Silk Road and This One is DigitalrdquoWorld Economic Forum August 2018 see httpswwwweforumorgagenda201808china-is-building-a-new-silk-road-and-this-one-s-digital accessed 29 March 2019

39 See note 2540 Jonathan Woetzel Jeongmin Seong and Kevin Wei Wang ldquoHow China Became

a Digital Leaderrdquo McKinsey Global Institute December 6 2017 see httpswwwmckinseycommgioverviewin-the-newshow-china-became-a-digital-leader accessed 23 September 2019

41 Jennifer L Schenker ldquoWhy China Wants To Lead the 5G Chargerdquo MediumMarch 2018 see httpsinnovatornewswhychina-wants-to-lead-the-5g-charge-249151bee73b accessed 30 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 20: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 19

to the adoption of new technologies such as mobile paymentsrdquo hadculminated to massive growth in Chinese e-commerce constituting toabout 42 per cent of the global market42

The focus on digitalisation as highlighted in President Xirsquos speech is also away to offer something China wants to be known for China has rapidlytransformed itself into a global power in the digital space leading theworld in the number of internet users the volume of online retail salesand mobile internet development The ldquoDigital Silk Roadrdquo could potentiallybring a transformation in both infrastructure and economic models inemerging markets

First critical infrastructure blended with digital as well as state of the arttechnologies could be seen as a more viable and sustainable investment inthe long run as proposed in the second BRI forum For instance theChina Machinery Engineering Cooperation worked with Siemens toincorporate two high efficiency gas turbines for the Jhang power plant inPakistan to make more power and become cost efficient This powerplantrsquos generation capacity was equal to the total power consumption ofapproximately 4 million households in Pakistan43 Additionally advancedmonitoring systems and smart sensors can be fused into infrastructure toascertain the optimization of resources Smart grids also provide an efficientoption of matching supply with demand so that power plants consumefewer fossil fuels

Secondly advanced IT infrastructure would facilitate the flow ofinformation and data in cyberspace which is deemed to minimize culturaldifferences reduce asymmetric information build trust for Belt and Roadcountries and regions and stimulate cooperation in multiple fields such as

42 Rob Smith ldquo42 of Global E-Commerce is happening in China Herersquos WhyrdquoWorld Economic Forum April 18 2018 see httpswwwweforumorgagenda20180442-of-global-e-commerce-is-happening-in-chinaheres-whyaccessed 30 March 2019

43 ldquoFirst H Class Gas Turbines to be Installed in Jhangrdquo Dawn October 2017 seehttpswwwdawncomnews1361302 accessed 31 March 2019

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 21: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

20 | AJEY LELE AND KRITIKA ROY

information infrastructure trade finance industries science educationculture and health44 As many of the Belt and Road countries are yet toexperience a thriving e-commerce sector due to the lack of good digitalinfrastructure As a result of the initiative many Chinese online retail giants(such as Alibaba) would be spearheading the development of a truly globale-commerce market The expected boost in economic growth and furtherindustrial upgrading and restructuring would help in granting more flexibilityto employment and start ups There are villages whose farmers are workingon Alibabarsquos shopping site called ldquoTaobao villagesrdquo45 Alibaba has alsoofficially defined Taobao as ldquoa village in which over 10 of householdsrun online stores and village e-commerce revenues exceed 10 million RMB(roughly 16 million USD) per yearrdquo According to Alibabarsquos data thereare more than 1000 Taobao villages in China46

Chinarsquos digital products and services have begun to conquer the globalmarket with 42 per cent of the global e-commerce market47 The countryis also seeking digital leadership through research collaborations in emergingtechnologies building digital infrastructures mdash for instance building cablenetworks and paving the way for e-commerce In fact China is amongthe top three in the world for venture capital investment in key types ofdigital technology including virtual reality (VR) autonomous vehicles 3-D printing robotics drones and AI48

44 Winston Ma Wenyan ldquoCould a Digital Silk Road solve the Belt and Roadrsquossustainability problemrdquo World Economic Forum September 2018 see httpswwwweforumorgagenda201809could-a-digital-silk-road-solve-the-belt-and-roads-sustainability-problem accessed 01 April 2019

45 ldquoAlibaba turns hundreds of poor villages into lsquoTaobao Villagesrsquordquo China DailyJanuary 2019 see httpwwwchinadailycomcna20190113WS5c3a220ea3106c65c34e4115html accessed 01 April 2019

46 Ibid47 Jonathan Woetzel Jeongmin Seong et al ldquoDigital China Powering The

Economy To Global Competitivenessrdquo McKinsey amp Company December 2017see httpswwwmckinseycom~mediaMcKinseyFeatured20InsightsChinaDigital20China20Powering20the20economy20to20global20competitivenessMGI-Digital-China-Report-December-20-2017ashxaccessed 23 September 2019

48 See note 40

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 22: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 21

49 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 20September 2019

50 Ibid

212 Investment in New Technologies

China is home to dynamic digital innovators and is a leading global investorin the latest technologies It has contributed approximately 2 billion USDtowards ICT infrastructure development between 2010 and 2014surpassing traditional donors like UN agencies and EU institutions49 Withthe official announcement of the 2025 ldquoMade in Chinardquo strategy the countryhas been diligently working towards a large scale digital transformationIn fact the upgradation of the 2017 roadmap of the strategy to includedigital and disruptive technologies mdash like 5Gblockchain AI QuantumComputing mdash showcases that China taking effective steps towards theimplementation of the new digital Silk Road The ldquoNational TalentDevelopment Plan 2010ndash2020rdquo focuses on increasing the talent poolfrom114 million to 180 million by 2020 to support the transition to aninnovation driven growth model50

5G

The Made in China 2025 document outlines the importance of 5G as aldquokey emerging technologyrdquo and China is taking the lead in developingand implementing 5G the ultrafast data network technology that isenvisaged to turn the digital Silk Road into an information superhighwayThe deployment of 5G networks across the BRI states is expected toprovide greater bandwidth speed reliability and eventually ubiquitousconnectivity that is needed to support the continual exchange of databetween IoT devices and systems Chinarsquos leadership in 5G is attributed tointense national coordination in the telecom sector China Unicom andChina Telecom have even started initial negotiations on the state controlledmerger with BRI states that would further accelerate 5G expansion Huaweialone has been investing 600 million for research and development in 5G

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 23: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

22 | AJEY LELE AND KRITIKA ROY

technologies since 200951 As of February 2019 the company owned 15295G patents52 Combine these statistics with those of other Chinese telecomsand one finds that China owns most of all the 5G patents worldwideThe chart below depicts that Huawei holds the top position in 5G patentsfollowed by Qualcomm and Samsung However if one combines thestatistics of Huawei and ZTE (both are Chinese enterprises) they willsurpass some of the top companies worldwide China has also plannedto upgrade its national telecommunications system to 5G and hasannounced an investment of 411 billion USD on that front The ChinaAcademy of Information and Communication Technology had predictedthat by 2030 5G will drive 63 trillion Yuan of economic output in thecountry State-owned companies have also pushed ahead to develop 5Gstandards jointly with the government and to introduce them tointernational standardization bodies

5G Patents Initiatives Enabling Technologies and SEPs Comparison

Source GreyB Services 2019 see httpswwwgreybcom5g-patentsaccessed 24 September 2019

51 Raymond Zhong ldquoChinarsquos Huawei is at Centre of Fight Over 5Grsquos Futurerdquo TheNew York Times March 7 2018 see httpswwwnytimescom20180307technologychina-huawei-5g-standardshtml accessed 20 September 2019

52 Wesley Rahn ldquoBelt and Road Forum Will Chinarsquos lsquodigital Silk Roadrsquo lead to anauthoritarian futurerdquo DWcom April 2019 see httpswwwdwcomenbelt-and-road-forum-will-chinas-digital-silk-road-lead-to-an-authoritarian-futurea-48497082 accessed 01 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 24: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 23

AI

In July 2017 Chinarsquos government published a comprehensive AIdevelopment plan that states Chinarsquos ambition is to become ldquothe globalleader in AI fundamental theory standardization technologicaldevelopment and application by 2030rdquo53 The Next Generation ArtificialIntelligence Development Plan has projected that by 2030 AI will createentirely new sectors of the economy which are estimated to be worth 150billion Chinese Yuan (216 billion USD) It was also recently reported thatChina aspires to build a 21 billion USD technology park dedicated todeveloping AI near Beijing China is also planning to establish at least 50academic and research institutes by 2020 in the field of AI Current statisticspoint out that China has a pool of about 39000 AI researchers Chinarsquoscentral government funds the core AI-related research projects of bigplayers like Baidu Alibaba and Tencent It has also invested heavily inleading start ups like Cambricon Technologies which specializes in AIdevelopment and chips On purely quantitative indicators China seemswell on track to achieve its global AI leadership goals China tops mostquantitative rankings mdash for example in the scale of global fundingattracted in the number of patents and in the scale of investment inresearch and development54 China filed 30000 patents in 2018 and thiswould see an increasing trend in the coming years55AI is seen as a coretechnology in the country which is vital to its economic growth in thecoming years leading to a wave of investments in research and development

53 Roma Eisenstark ldquoWhy China And The US Are Fighting Over 5Grdquo TechnodeMarch 30 2018 see httpstechnodecom201803305g accessed 02 April2019

54 Yawen Chen ldquoChinarsquos City of Tianjin to Set up $16-Billion Artificial IntelligenceFundrdquo Reuters May 17 2018 see httpswwwreuterscomarticleus-china-ai-tianjinchinas-city-of-tianjin-to-set-up-16-billion-artificial-intelligence-fund-idUSKCN1II0DD accessed 02 April 2019

55 Peter H Diamandis ldquoChina is Quickly Becoming an AI SuperpowerrdquoSingularityHub August 29 2018 see httpssingularityhubcom20180829china-ai-superpowersm0000vx96wm5h5duvye42h74g8kc46 accessed 03April 2019

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 25: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

24 | AJEY LELE AND KRITIKA ROY

as well as talent acquisition China is investing in many AI parks facialrecognition technologies and data centres to further its ambition of AIleadership For instance Malaysia welcomed a project to create an AI hubwith the help of Chinese AI unicorn SenseTime The 1 billion USD parkis supposed to help local tech businesses develop robots and speechrecognition and foster tech talent56 Even Zimbabwe has signed a contractwith a Chinese company named CloudWalk Technology to implementfacial recognition across the country with cameras expected to be installedat city streets airports as well as transit facilities by Hikvision57

Blockchain

China is also taking gigantic steps to exploit the potential of blockchaintechnologies A survey of international tech executives saw the country asthe emerging blockchain leader58 China not only ranks third in totalblockchain-related spending by region59 but the Chinese companies havealso filed more than half of blockchain patents worldwide in 2017 Manyapplications are being introduced in China using the technology Forinstance the civil administration in Chancheng district in GuangdongProvince has been moved onto a blockchain with the addition of theldquocommunity correction applicationrdquo which tracks and notes the movementof former prison inmates The most notable effort has been China movingto become a cashless society by introducing crypto RMB

56 Summer Wang and Tripti Lahiri ldquoA future AI park in Malaysia shows howcriticism is changing Chinarsquos foreign investmentrdquo Quartz April 2019 see httpsqzcom1602194an-ai-park-in-malaysia-shows-chinas-belt-and-road-is-evolving accessed 19 June 2019

57 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed on 19June 2019

58 Miryam Amsili ldquoBlockchain In China Local Is Everythingrdquo Supchina August28 2018 see httpssupchinacom20180828blockchain-in-china-local-is-everything accessed 03 April 2019

59 ldquoBlockchain is Here Whatrsquos Your Next Moverdquo PwC see httpswwwpwccomgxenissuesblockchainblockchain-in-businesshtml accessed 04 April 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 26: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 25

Quantum computing

China is striving for supremacy in the field of Quantum Computing aswell The country achieved a major breakthrough in Quantumcommunication in September 2017 when researchers conducted the firstquantum video call between Beijing and Vienna Quantum Computingcommunication and sensoring were also a part of the Made in China2025 strategy Civil-Military Fusion Plan (2017) and the 13th Five YearPlan (2016-2020)

Chinarsquos encompassing and ambitious digital policies neatly blankets theweak ICT infrastructure of developing economies as well as theirfragmented cyber policies Chinarsquos digital connectivity project has alreadystarted impacting many countries in terms of fair economic competitionthey are creating uncertainties and may likely be a challenge for data securityand privacy protection At the same time Chinarsquos initiative provides adigital alternative to the West dominated digital solutions and businessmodels

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 27: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

26 | AJEY LELE AND KRITIKA ROY

31 SPACE SILK ROAD

Space technology is another arena where China has made rapid progressduring the last few decades Today China gets recognised as one of theleading players globally in the space arena This chapter debates the variousaspects of Chinarsquos space programme which are BRI specific The purposeof this paper is not to discuss Chinarsquos entire space progress However justto set a context for locating this programme in the BRI matrix somegeneral aspects of the space programme have been stated

As mentioned before connectivity is the key of the BRI strategy andhence there is a greater relevance for Chinarsquos satellite based technologywhich provides PNT (Positioning Navigation and Timing) inputs It wasrealised that for any connectivity in water road rail or in the air there is arequirement of such PNT system It is likely that this need was instrumentalin formulating the idea behind the Space Silk Road This concept wasintroduced in 2014 by the International Alliance of Satellite ApplicationServices (ASAS) The Space Silk Road aims at creating an entire range ofspace capabilities including satellites launch services and groundinfrastructure it also aims at supporting related industries and serviceproviders going global60

Chinarsquos space programme began during the 1950s Sputnik 1 the firstartificial earth satellite was launched by the erstwhile Soviet Union on 4October 1957 However during the Second Plenary Meeting of the EighthParty Congress on May 17 1958 Chairman Mao announced the need forChina to have its own satellite Subsequently China took more than adecade to make its space programme operational and Dongfanghong I

SECTION III

60 ldquoChina`s Space Silk Roadrdquo Medium May 25 2018 see httpsmediumcombeltandroadchina-s-space-silk-road-4e09721543a6 accessed 12 March 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 28: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 27

was the first space satellite launched successfully by China on April 241970 Initially the agenda was civilian in nature but over a period of timethe involvement of the PLA began Through the early 1960s the advocatesfor Chinarsquos satellite programme were located within the civilian ChineseAcademy of Sciences (CAS) At the same time China was developingballistic missiles primarily with Soviet help Chinarsquos successful testing of amedium-range ballistic missile the DF-2 on 29 June 1964 shaped thecircumstances for a change in policy and organization and since then thePLA has been the main architect of Chinarsquos space programme61

China has published four White Papers (in 2000 2006 2011 and 2016)on space aspects thus far and has made public various present and futurespace projects These White Papers could be viewed as the attempts madeby China towards making public their achievements commitments andproposals However possibly these could be the only projects which Chinawants the rest of the world to know about and not all the projects Chinahas developed assets for meteorology remote sensing earth observationcommunication and navigational purposes The 2016 White Paper identifiesvarious fundamental policies with regard to international space exchangesand cooperation The paper also states that China is keen on lsquostrengtheningbilateral and multilateral cooperation which is based on common goalsand serves the Belt and Road Initiativersquo62

Zheng He (1371ndash1433) a Chinese mariner by profession is known tohave explored much of the world for China He is known to haveundertaken seven major expeditions and is known to be responsible forestablishing Chinese trade in new areas which has facilitated the openingup of the Maritime Silk Road The ancient Chinese invented astro navigationand Zheng is known to be the first user of this technique during his variousexpeditions The position and course of his fleet were determined byobserving the stars and constellations such as the Big Dipper the Southern

61 Gregor Kulacki and Jeffery Lewis ldquoA Place for Onersquos Mat Chinarsquos Space Program1956ndash2003rdquo Cambridge MA American Academy of Arts and Science 2009 n 9

62 ldquoFull text of white paper on Chinarsquos space activities in 2016rdquo The State CouncilThe Peoplersquos Republic of China

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 29: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

28 | AJEY LELE AND KRITIKA ROY

Cross and the Lyra constellation Living on the northern hemisphereChinese people on land also used to navigate by spotting the Big Dipper63

The Chinese word for the Big Dipper is BeiDou The modern day satellitebased navigational system introduced by China mdash which is also known tohave a major role in the conceptualisation of BRI mdash is termed BeiDou

The BeiDou navigational system (BDS) has generated interest globallyowing to its quality and to Chinarsquos systematic management of the entireproject At present China intends to have a 35-satellite system for providinga global network for positioning navigation and timing services This isan all-weather system and is in line with the needs of the countryrsquos nationalsecurity and economic and social development64 This system is at theheart of the entire BRI project and is often described as the ldquodigital gluerdquo65

BeiDou is known to be playing a major role in taking the BRI forward

311 THE CHINA SATELLITE NAVIGATION SYSTEM

China started exploring satellite navigation technology in the late 1960sHowever owing to various technical difficulties and the lack of fundingmdash particularly during the Cold War era mdash China had not made muchprogress in developing such a system Based on the lsquoTwin-Starrsquo regionalnavigation theory they tested a satellite positioning system on two DFH-2A communications satellites This test showed that the precision of theTwin-Star system was comparable to the publicly available signals of theUnited States Global Positioning System (GPS)66

63 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

64 ldquoChinarsquos BeiDou Navigation Satellite Systemrdquo White Paper 16 June 2016 seeht tpw wwchinaorgc ngovernmentw hitepaper2016 -0616content_38681076htm accessed 12 February 2019

65 ldquoChinarsquos lsquoOne Belt One Roadrsquo Takes to Spacerdquo The Wall Street Journal December28 2016 see httpsblogswsjcomchinarealtime20161228chinas-one-belt-one-road-takes-to-space accessed 12 February 2019

66 ldquoBeidou1 Experimental Satellite Navigation Systemrdquo see httpwwwastronautixcomcraftbeidouhtm accessed on 30 Jun 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 30: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 29

Following this government approval for the development of the satellitenavigational system was granted during 1993ndash94 BeiDouBeiDou-1 wasChinarsquos first regional navigational system and was developed by the ChinaAcademy of Space Technology (CAST)67

As per the China National Space Administration (CNSA) and CSNO(China Satellite Navigation Office) the development of the Chinese globalnavigation system is to be carried out in three phases68

1) Phase-I is the BeiDou Navigation Satellite Demonstration Systemwhich was established in the period 2000ndash2003 The experimentalBeiDou navigation system consisted of 3 satellites

2) Phase-II is the regional BeiDou navigation satellite system coveringChina and the neighboring regions by 2012 By 2014 the systemwill be ready to initially offer high-precision positioning andnavigation services to the Asia-Pacific region

3) Phase-III is the BeiDou navigation satellite system to be establishedcompletely and provide global service by 2020

China is planning to have a 35-satellite global navigational network by theyear 2020 The BeiDou supports both global worldwide services as wellas regional services The global services are further sub-divided in twoother services the Open Service and the Authorized Service The OpenService is similar to GPS and Galileo and it is free of charge and open toall users worldwide The system is designed to provide a position accuracyof 10 meters a timing accuracy of 50 ns and a velocity accuracy of 02meters per second The Authorized Service aims at ensuring highly reliableuse even in complex situations and is expected to provide military gradesignal For regional use there are wide area differential services and short

67 Ajey Lele ldquoAutonomy in Satellite Navigation Systems The Indian ProgrammerdquoIndian Foreign Affairs Journal Vol 9 No 3 JulyndashSeptember 2014 pp 240ndash254

68 ldquoCNSSrdquo eoPortal Directory see httpsdirectoryeoportalorgwebeoportalsatellite-missionscontent-articlecnss accessed 11 May 2019

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 31: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

30 | AJEY LELE AND KRITIKA ROY

message services69 The entire system is expected to be dynamic in natureAs the number of satellites increase then obviously the nature of servicesprovided would improve Some structural changes are also expected owingto the emergence of new technologies as also based on the performanceof the system

The Beidou Phase III system comprises the migration of its civil Beidou 1or B1 signal from 1561098 MHz (Megahertz) to a frequency centred at157542 MHz mdash the same as the GPS L1 and Galileo E1 civil signals mdashand its transformation from a quadrature phase shift keying (QPSK)modulation to a multiplexed binary offset carrier (MBOC) modulationsimilar to the future GPS L1C and Galileorsquos E1 The Phase II B1 openservice signal uses QPSK modulation with 4092 megahertz bandwidthcentred at 1561098 MHz The existing (as during May 2019) Beidouconstellation spacecraft are transmitting open and authorized signals at B2(120714 MHz) and an authorized service at B3 (126852 MHz) Real-time stand-alone Beidou horizontal positioning accuracy was classed asbetter than 6 meters (95 per cent) and with a vertical accuracy better than10 meters (95 per cent)

The CNSS (Compass Navigation Satellite System) which at places alsogets referred to as BDS (BeiDou Navigation System) supports two differentkinds of general services the RDSS and the RNSS In the RadioDetermination Satellite Service (RDSS) the user position is computed bya ground station using the round trip time of signals exchanged via theGEO satellite The RDSS long term feature further includes short messagecommunication (guaranteeing backward compatibility with Beidou-1) largevolume message communication information connection and extendedcoverage The Radio Navigation Satellite Service (RNSS) is very similar tothat provided by the GPS and Galileo and is designed to achieve similarperformances70

69 ldquoBeiDou Servicesrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_Services accessed on 08 May 2019

70 Information in this and previous para is as mentioned in see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3baccessed on 10 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 32: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 31

Overall there has been a reasonable amount of transparency about thissystem and China has made available various technical details about thesystem For example there are documents giving details about thespecifications relating to open service signal B1I and B2I between thespace segment and the user segment71

The BeiDou-1 system was capable of providing all-weather two-dimensional positioning data for both military and civilian purposes Itcould also undertake communication functions The first two satellites forthis system were launched during 2000 and the system began providingnavigational support in late 2001 The third satellite (backup) was launchedin 2003 and the network was made available to civilian users in April2004 (BeiDou-1A BeiDou-1B and BeiDou-1C belong to the originalBeiDou-1 system) With this China became the only third country in theworld to possess an operational space-based navigational network Thelast satellite in this constellation was launched in 2007 and the system wasworking with 20m accuracy All these satellites were in geostationary orbit

BeiDou-1 provided a lot of learning value for China Based on thisexperience China undertook the next two phases of development Thereis some obvious overlap between all the phases With the development ofBeidou-2 China envisioned establishing a global navigational footprintAs of December 2011 the BeiDou system was officially announced toprovide Initial Operational Service mdash that is providing initial passivepositioning navigation and timing services for the whole Asia-Pacific regionwith a constellation of 10 satellites (5 GEO satellites and 5 IGSO satellites)Subsequently various additional satellites have been added72 The WuhanOptics Valley BeiDou Holding Group Co Ltd (Optics Valley BeiDou) isdedicated to promoting and popularising BDS technology and applications

71 ldquoBeiDou Navigation Satellite System Signal In Space Interface Control DocumentOpen Service Signal (Version 20)rdquo China Satellite Navigation Office December2013 see httpwww2unbcaggeResourcesbeidou_icd_english_ver20pdfaccessed 02 May 2019

72 ldquoBeiDou General Introductionrdquo esanavipedia see httpsgsscesaintnavipediaindexphpBeiDou_General_Introduction accessed 04 May 2018

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 33: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

32 | AJEY LELE AND KRITIKA ROY

in the ASEAN area and also within China73 There are eight subsidiarycompanies in this group and this group is responsible to manage all BDSrelated business interests On 27 December 2018 the BeiDou NavigationSatellite System has started providing global services Owing to the overlapbetween the various phases it is tricky to identify exactly how many satellitesare launched per phase Also it may be noted that few satellites launchedduring the beginning of the 21st century have already completed theirlifecycle The following table is based on various sources available on theinternet and gives a broad idea about various navigational system relatedlaunches

Summary of Satellites

Block Launch Satellite launches Currently in orbitPeriod and healthy

Success Failure Planned

1 2000-2006 4 0 0 0

2 2007-2018 19 0 1 15

3 2015-present 25 0 15 25

Total 48 0 16 40

Last updated April 21 2019

73 ldquoOptics Valley Beidourdquo see httpwwwwhggbdcomEnDataContent39accessed 08 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 34: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 33

BeiDou has a significant user base in China More than 617 millioncommercial vehicles are known to be using this system This is particularlytrue of the public transportation systems mdashlike buses and taxis mdash whichare very dependent on these systems There are also 35000 postal andexpress delivery vehicles 80000 buses in 36 cities as well as some 370public service ships across the country all of which are dependent onChinarsquos GPS system At present the reach of BDS is possibly more than50 countries with an approximate population of around 3 billion peopleThe system is also used in indigenous civilian aircraft74

The relevance of the BeiDou system for BRI needs to be inferred fromthe various specific and general purpose characteristics of the systemAccording to statistics in contemporary information society 85 per centof the information society has the property of location velocity and timeThus the Navigation Satellite System that offers this sort of property hasbecome the essential infrastructure of the progress of the informationsociety and has also become the core and base of the development ofthe information industry75 The BeiDou Navigation Satellite Systemprovides basic services to all users and high-level services to specific usersThe performance is expected to be of high-quality over the region of theAsia-Pacific Subsequently when the system would become fully operationalwith all satellites in space it is expected that it would be available globallyAlso the system will be compatible with other major global navigationsystems

The BeiDou also has applications beyond standard navigational inputs Ithas been widely used for communication marine fishery hydrological

74 ldquo10 BeiDou satellites to be launched by China this yearrdquo Geospatial World February2019 see httpswwwgeospatialworldnetnews10-beidou-satellites-to-be-launched-by-china-this-year accessed 16 May 2019

75 ldquoOverview of Overview of Compass CompassBeiDou NavigationNavigation Satellite System (CNSS) Satellite System (CNSS)rdquo China SatelliteNavigation Project Center China Satellite Navigation Project Center February2008 see httpwwwunoosaorgdocumentspdficgprovidersforum20083pdf accessed 13 May 2019

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 35: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

34 | AJEY LELE AND KRITIKA ROY

monitoring weather forecasting surveying mapping and geographicinformation forest fire prevention time synchronization forcommunication systems power dispatching disaster mitigation and reliefemergency search and rescue and other fields76 The BRI member stateswould have all these services available for themselves

China is trying to plug in the BDS with other global satellite systems toprovide free research and use in rescue services around the world It hasbeen recognized by the International Civil Aviation Organization theInternational Maritime Organization and the 3rd Generation PartnershipProject (a standards organization which develops protocols for mobiletelephony) The BDS has already been used in the Safe City Project inPhongsaly in northern Laos It is used to maintain public security andposition police forces and emergency vehicles BDS is expected to makethe applications of the BeiDou system tailored to suit customersrsquo needsBDS can provide diverse and innovative services For example accuratepositioning can be used in driving tests and the overhauling of tracks ofhigh-speed railways This system is also expected to have significant utilityin arenas like disaster management It would help to monitor landslidesand dam deformations using accurate positioning It is broadly arguedthat the capabilities of the BDS can be only limited by imagination77 Thusthere appears to be much attraction towards the acquisition of this systemamongst the BRI states

As of May 2019 BDS covers 30 countries involved with the BRI includingPakistan Laos and Indonesia China plans to extend BeiDou services toall the BRI countries78Also providing high-quality navigational service to

76 Rui C Barbosa ldquoBeidou-3 navigation satellite launched on Long March 3BrdquoNASA Spaceflightcom April 20 2019 see httpswwwnasaspaceflightcom201904beidou-3g2q-navigation-long-march-3b accessed 10 May 2019

77 ldquoChinarsquos BeiDou navigation system to serve BampR countriesrdquo Xinhua News AgencyNovember 16 2018 see httpsengyidaiyilugovcnqwywrdxw71826htmaccessed 15 May 2019

78 Sabena Siddiqu ldquoBRI BeiDou and the Digital Silk Roadrdquo see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-roadaccessed 14 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 36: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 35

the Arab world is high on the Chinese agenda The Arab ICT Organizationhad organized the second edition of the ldquoChina-Arab States BeiDouCooperation Forumrdquo in Tunis(Tunisia) in April 2019 in partnership withCSNO This forum is a multilateral platform for cooperation and exchangebetween China and the Arab countries in the field of Satellite NavigationThe aim of this forum is to further promote BeiDou services andapplications benefiting the socio-economic development of the Arab statesas well as the other countries along the BRI region and in African countriesas well79

312 Space Silk Road80

A comprehensive evaluation of the Digital Silk Road is closely linked toChinarsquos activities in space As a part of the initiative the country not onlyprovides internet connectivity but also satellite launches Thus ldquoSpace-based Silk Roadrdquo is likely to encompass many powerful communicationssatellites and high resolution remote-sensing satellites

The Institute of Space amp Earth Information Science (ISEIS) of the ChineseUniversity of Hong Kong (CU) has signed an agreement with Dong FangTengFei (DFTF a subsidiary of the Beijing Xiangzhi company) in 2014 tojoin the ldquoSpace Silk Roadrdquo for developing global satellite services Tofurther international services for Chinese satellites important aerospaceenterprises and research institutes mdash like the China Great Wall IndustryCorporation China Satellite Communication Co Ltd etc mdash have cometogether to form an International Alliance of Satellite Application Service(ASAS) in August 2014 and have initiated the ldquoSpace Silk Roadrdquoprogramme to coordinate international cooperative research in space-basedsatellite technology for the lsquoSilk Road Economic Beltrsquo strategy

79 ldquoThe Second ldquoChina-Arab States BeiDou Cooperation Forumrdquo ArabInformation and Communication Technologies Organization April 2 2019see httpwwwaictoorgthe-second-china-arab-states-beidou-cooperation-forumlang=en accessed on 30 April 2019

80 This section is based on authorrsquos earlier work available at httpsidsainidsacommentssilk-road-initiative-via-aerospace_alele_211015 accessed 16 May2019

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 37: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

36 | AJEY LELE AND KRITIKA ROY

Apart from governmental and private agencies a few interdisciplinarynon-profit NGOrsquos are also involving themselves in this project The ChinaSatellite Global Services Alliance (CSGSA) is one such agency Launchingsatellites is only one aspect of data collection It is important to have theground infrastructure for the purposes of collection analysis and dissipationof data Hence they are investing in developing good ground facilitiesCurrently the CSGSA has established trial satellite receiving bases in XinjiangNingxia Hainan and Fujian all important locations for the B amp R projectsSubsequently for establishing receiving stations they propose to movewestwards over land through Central Asia and its neighbourhood toEurope the Indian Ocean Africa and Latin America China would requireassistance from the Central Asian states Malta Malaysia India the USABrazil and Norway for establishing satellite receiving facilities within theirborders

The idea of the ldquoSpace Silk Roadrdquo is almost nearing reality On 29 May2015 the CSGSA and the International Trade Centre (ITC) jointly heldthe 2nd China Satellite Global Services International Cooperative Talkswherein international experts discussed the construction of the Space SilkRoad With an increase in global aviation traffic in general and an increasein traffic in the region owing to Belt and Road network a rise in the safetydemands of civilian airlines is expected The disappearance of MalaysiaAirlines flight MH370 and the shooting down of flight MH17 over Ukrainehighlights the need for a more comprehensive satellite network to provideadditional and real time information about the position of aircraft

The existing black box in aircraft provides information only after a mishap(provided it is found and is not damaged) China wants to use the SpaceSilk Road system to create a live-feed ldquoblack boxrdquo which would provideconstant global coverage of all air shipping and overland routes Thesystem is also expected to enable planes and satellites to communicatewith each other China proposes to use the Beidou navigational networkas one of the important components in this system Obviously all thiswould require an addition to the civilian aircraft equipment inventory byadding relevant transmitters receivers data storage equipment etc Thiscould generate additional business too

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 38: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 37

Seamless internet connectivity would be essential for the success of spaceBRI as there could be issues with aircraft and ships passing through areascovered by different satellite signals The main satellite company in Chinamdash the China Satellite Communications mdash has plans to launch new satellitesusing the Ka-band frequency (which offers higher speeds and requires asmaller satellite dish for operations) that will envelop the BRI region in thenear future Possibly in this connection in December 2018 China carriedout the launch of a secretive communications satellite to geostationaryorbit The payload is known as the communication technology test satellite3 (Tongxin Jishu Shiyan Weixing-3) or TJS-3 In fact in September 2015China launched the communications satellite TJS-1 and Ka-Band frequencybroadband communications were tested81 China may also have to lookfor other options mdash like high-altitude drones or near-space systems mdash toensure that no internet blackout takes place

Statistics from the International Disaster Database show that the relativedisaster losses along the Belt and Road are double the global average ofmeteorological disaster The Fengyun satellite mdash developed by ChinarsquosAerospace Science and Technology Group mdash is an important memberof the Global Earth Observation and Meteorological satellite With thehelp of these satellites all Arab countries have access to tailor made all-weather three-dimensional observation clearly capturing changes in windand cloud and effectively compensating for the shortcomings of groundobservation The Fengyun 2 H star mdash which was launched in June 2018mdashwould provide better monitoring services for Arab countries aftercompleting the on-orbit test82

81 See httpsgbtimescomchina-sends-secretive-satellite-towards-geostationary-orbit-with-38th-launch-of-2018 accessed 16 May 2019

82 ldquoXi Jinping To build a ldquoBelt and Roadrdquo space information corridorrdquo Netcommilitary and civilian integration China Aerospace Science and Technology GroupCo Ltd July 2018 see httpsmpweixinqqcoms__biz=M z I 0 N j U 2 N D M w N Q = = amp m i d = 2 2 4 7 4 8 5 9 8 7 amp i d x = 1 amp s n=4e0e96f65efe032f29b0daffd71bb997ampchksm=e9bc1e9ddecb978b3e79cfcee210cbb963d55be7b5c0bd2009bb430d31aff0354f2789f57fc9ampscene=0rd accessed 19June 2019

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 39: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

38 | AJEY LELE AND KRITIKA ROY

There are some projects (mostly at the bilateral level) which are not clearlyidentified as projects under the BRI umbrella however it appears thatsuch projects would be a part of the (official or unofficial) BRI mandateSome projects could be said to have begun before the initiation of theBRI and now could be supported by BRI policies

The most startling example today is in Argentina Here one project hassparked broad international media interest This is a 50 million USD Chinese-funded satellite and space mission control centre in the countryrsquos Patagoniaregion that had a role in landing a Chinese rover on the far side of theMoon in January 2019 The bilateral agreement between China andArgentina was signed in 2012 (only the non-military clause was added in2016) and gives Argentina access to antenna time at the control centreHowever there is no evidence that there are any scientific benefits forArgentina from this project The project is run in a very secretive fashionand common people visitors and the media have no access to the siteAlso no information about the nature of the ongoing work there is sharedwith the outside world

In comparison there is some clarity about the project with Brazil whichgot established in August 2014 The Chinese Academy of Sciences (CAS)and Brazilrsquos National Institute for Space Research (INPE) in Satildeo Paulohave a ChinandashBrazil Joint Laboratory for Space Weather The projectprovides real-time data about the processes and disturbances in the Earthrsquosupper atmosphere to researchers in both countries83

In South Asia Pakistan is an important partner for China in its Space SilkRoad project The science and technology relationship between Islamabadand Beijing dates back to the 1970s and has typically involved Chinarsquosassistance in technology transfers undertaking joint projects and trainingIn recent times the cooperation between the two countries has deepenedand widened owing to the China-Pakistan Economic Corridor (CPEC)

83 Lucien O Chauvin and Barbara Fraser ldquoSouth America is embracing Beijingrsquosscience silk roadrdquo Nature May 8 2019 see httpswwwnaturecomimmersived41586-019-01127-4indexhtml accessed 16 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 40: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 39

a flagship BRI project They are planning to expand and deepen theircollaboration in the areas of new and emerging technologies such asnanotechnology biotechnology and information and communicationstechnology Space is also one area which is getting a lot of attention Chinahas already launched satellites for Pakistan Recently in 2018 a remotesensing satellite was launched Now there is a proposal to cooperate inhuman space flight with the aim of sending a Pakistani astronaut intoorbit by 2022 Their cooperation also extends to space security efforts inmultilateral forums84

By connecting industries and infrastructure projects along the BRI Chinarsquossatellite navigation and communication system hopes to dominate the newdigital infrastructure in the BRI space As new ideas for space-based internetservices emerge China is well ahead of the curve Google Amazon andSpaceX are all developing projects to provide broadband services aroundthe world through networks of satellites numbering hundreds85

On 16 July 2018 China announced its plans to launch 320 low-orbitsatellites (the Hongyan constellation Hongyan stands for lsquowild goosersquo inancient China geese were used to deliver messages) to provide worldwidecommunication services This is a global two-way real-time datatransmission system along with other multimedia data services It isexpected to provide energy and engineering companies with servicesincluding the management of global assets personnel positioning andemergency rescue and communication services Eventually this satellitecommunication network will take the place of the ground-based networkand will allow a mobile phone to be connected everywhere on the planeteither in a remote desert or at sea

84 ldquoSpace Silk Road Pakistan And China Enhance Space Science And TechnologyCooperationrdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811pakistan-and-china-enhance-space-science-and-technology-cooperation accessed28 April 2019

85 C Rajamohan ldquoRaja Mandala A silk road for the heavensrdquo The Indian ExpressApril 23 2019 see httpsindianexpresscomarticleopinioncolumnsindia-china-silk-route-beijing-belt-and-road-initiative-big-earth-data-5689184accessed 08 May 2019

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 41: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

40 | AJEY LELE AND KRITIKA ROY

The first satellite called Hongyan-1 (launched in December 2018) is to beone of nine satellites placed in orbit by 2020 as part of a pilot demonstrationfor the Hongyan system The initial 60 satellites making up the first phaseof deployment of the Hongyan mega-constellation are supposed to be inorbit and in operation by around 202386 The entire 320 satellite system isexpected to be completed by 2025 A factory capable of assembling 130Hongyan satellites every year has been constructed in Tianjin a port cityclose to Beijing The Hongyan mega-constellation will reportedly be capableof providing mobile connectivity to 2 million users satellite broadbandto 200000 users and IoT coverage to 10 million users within China aswell as in countries participating in the BRI87

Chinarsquos space ambition neatly folds into the technological requirements ofthe developing BRI countries Control of the high ground of space wouldallow the domination of the earth because if information is the basis of21st century power space is the domain through which that informationwill flow While China presents these dramatic advances as part of itseffort to promote space and digital connectivity through internationalcooperation there is no mistaking its implications on all fronts mdashgeopolitical technological in foreign policy and at the geostrategic level

86 Rupali Pruthi ldquoChina to launch 300 satellites to provide worldwide low-orbitcommunicationsrdquo Jagran Josh July 17 2018 see httpswwwjagranjoshcomcurrent-affairschina-to-launch-300-satellites-to-provide-worldwide-loworbit-communications-1531819736-1 accessed 08 May 2019

87 ldquoChinarsquos New Space Race First Satellite of CASCrsquos Hongyan LEO SATCOMConstellation to Launch By End Of 2018rdquo Spacewatch Asia Pacific see httpsspacewatchglobal201811chinas-new-space-race-first-satellite-of-cascs-hongyan-leo-satcom-constellation-to-launch-by-end-of-2018 accessed 08 May2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 42: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 41

41 ASSESSING THE DIGITAL AND SPACE BRI

The BRI is an ever evolving concept that has changed considerably sinceits inception in 2013 It has generated a blend of optimism and consternationaround the world This is due to the disruptive nature of the technologyitself and the geo-economic and geopolitical environment in which theBRI formulates can either reinforce or undermine the conscious choicesmade by China or other states The impact of Chinarsquos investment on boththe digital and space front will primarily depend on two critical factors(See note 49) first whether China pursues its ambition within a politicallymore ldquoassertiverdquo or more ldquocooperativerdquo framework secondly the waythe world will respond to the challenges accruing from Chinarsquos risemdash thatis either in a ldquounited and strongrdquo manner or in a ldquobifurcated and weakrdquomanner Many of the Belt and Road Projects have explicit geopoliticaltechnological security and geostrategic implications as dwelt upon belowThis initiative can be seen as an exercise primarily to position China as afulcrum of the induced change in the international strategic digital andspace dynamics which in turn aims to alter the dynamics of the largerworld order

411 The Economic Dimension

Chinarsquos BRI projects aim to integrate financial markets and connect nationstates with a string of next generation digital infrastructure and satellitecoverage This initiative could be seen as Chinarsquos move to dominate alarge part of the global communications market and in turn multiply itsown economic growth in the international arena Interestingly a New WorldBank Group Study has also promoted the BRI stating that it could ldquospeedup economic development and reduce poverty for dozens of developingcountries but it must be accompanied by deep policy reforms that increasetransparency improve debt sustainability and mitigate environmental social

SECTION IV

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 43: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

42 | AJEY LELE AND KRITIKA ROY

and corruption risksrdquo88 It further states that if implemented in the envisagedmanner BRI could help lift 32 million people out of moderate povertyand boost global trade by up to 62 per cent and up to 97 percent forcorridor economies89 Global income could also increase by 29 per cent90

The global activities of Chinese tech companies are a natural extension ofChinarsquos going out policy which also provides a chance to developingeconomies to catch up with the high speed developed digital world ZTEand Huawei have managed to become key partners for major telecomoperators in advanced countries and is also making inroads into developingeconomies by setting up data centres laying down optical fibre cablesand proposing ICT infrastructure For instance Zambiarsquos communicationsinfrastructure is going to be built by Huawei entirely and Chinese e-commerce giants Alibaba and Tencent are expanding their services forsmall businesses in Southeast Asia and Africa

China has a knack for spotting trends making cost-effective productsand understanding the needs of the customer all of which have allowedit to easily capture markets This has been given a boost by home growncompanies like Tencent Alibaba and Huawei that also aid in promotingthe same in the development of the Digital Silk Road Yet theseopportunities mean more challenges for developed countries as developingeconomies gain more level playing fields through Chinarsquos technologicaltransfers in the days to come In Myanmar in 2017 less than 1 per cent ofthe population had access to broadband Now the countryrsquos Minister ofTransport and Communication is operating with Huawei to bring in 5Gbroadband services by 2025 catapulting many generations of mobilenetworks in contrast to countries like Malaysia or Singapore91

88 ldquoSuccess of Chinarsquos Belt amp Road Initiative Depends on Deep Policy ReformsStudy Findsrdquo The World Bank June 18 2019 see httpswwwworldbankorgennewspress-release20190618success-of-chinas-belt-road-initiative-depends-on-deep-policy-reforms-study-finds accessed 24 September 2019

89 See note 8690 See note 8591 Chan JiaHao ldquoChinarsquos Digital Silk Road A Game Changer for Asian Economiesrdquo

The Diplomat April 30 2019 see httpsthediplomatcom201904chinas-digital-silk-road-a-game-changer-for-asian-economies accessed 20 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 44: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 43

As mentioned earlier Chinarsquos space program is also an integral part of itsnational economic rejuvenation and development goals The countryrsquos spaceprogram is aimed at long-term wealth creation for the Chinese nation byutilizing a space-based economy For instance Chinarsquos plans to establish alunar base would be a means of accomplishing its economic goals throughdeep space exploration asteroid mining and exploitation92 A base on themoon with the industrial capacity to build space craft by using lunarresources will also lower the costs of inter-planetary travel

The rapid development in the digital and space Silk Road would not onlygive a push to the Chinese economy but could also side line other emergingdigital and telecom companies and ensure Beijing as the sole provider ofdigital and space services at least within the BRI countries

412 The Geopolitical Dimension

With the growing tentacles of China encompassing both the digital domainand the space medium there is no denying the fact that it will eventuallyhave to lock horns with the major player in the field mdash the USA Moreoversensing competition many thriving national companies of other statesmay bring out their shields to protect their own interests This would nodoubt give rise to a fragmented international community

It is important to note that by signing up to the BRI lsquoSpace and InformationCorridorrsquo the BRI states would become reliant on Chinese-provided digitaland space services This would give China enough vantage to steer thepolicy options of those states as it would control the vital capabilities thatsupport their economic growth Additionally Chinese tech giants aremaking inroads in many BRI as well as non-BRI states Backed by strongstate support Chinese tech companies aim to become global leaders inInformation Technology and network equipment manufacturing as wellas in their plans to fortify their position in global deployment and standards-setting of 5G The scale of Chinese state support for emerging technologies

92 Namrata Goswami ldquoChinarsquos Get-Rich Space Programrdquo The Diplomat February28 2019 see httpsthediplomatcom201902chinas-get-rich-space-program accessed 22 May 2019

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

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Page 45: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

44 | AJEY LELE AND KRITIKA ROY

undermines the ability of US or any other firms to compete fairly eitherwithin China or in third markets It is known by many players that firstmover advantage in deployment will create new revenue streams fromthe expanded use of the IoT and other 5G-enabled technologies and soenable faster advancements in a countryrsquos development

One of the major debates has been over the deployment of 5G networksAs the trade and technology competition driven by US economic andnational security concerns and by Chinarsquos ambitious economic technologicaland industrial development goals has steadily escalated over the past yearsevery major issue linked with the network has become politicized93 On15 May 2019 the US administration issued an Executive Order (EO)stating the need to ldquosecure the Information and CommunicationsTechnology and Services Supply Chainrdquo as a part of which both sideshave imposed tariffs on the import of goods from the other country94

This EO comes in the wake of allegations against Chinese companies mdashand specifically against Huawei mdash on account of malicious activities likeeconomic and industrial espionage and close ties with the Chinesegovernment This EO would have global ramifications as Chinese-madeICT products are much cheaper than their Western counterpartsConsumers of ICT products are generally individuals and businesses Ifcompanies of Chinese origin are forbidden or restricted from carryingout their business in the USA or with their American counterparts thecosts of ICT products will certainly rise

While the USA has the upper hand vis-agrave-vis innovation capacity China hasthe first mover advantage as it has already built its domestic 5G ecosystemand Chinese companies are competing for market share abroad Thisgeopolitical tiff may give rise to a fragmented 5G ecosystem paving the

93 ldquoEurasia Group White Paper The Geopolitics of 5GrdquoEurasia Group November2018 see httpswwweurasiagroupnetsiteFilesMediafiles1811-14205G20special20report20public(1)pdf accessed 19 June 2019

94 ldquoStatement from the Press Secretaryrdquo The White House May 15 2019 seehttpswwwwhitehousegovbriefings-statementsstatement-press-secretary-56 accessed 26 June 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 46: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 45

way for two politically divided and potentially non-interoperabletechnology spheres of influence mdash one steered by the USA and backedby the technology development of the Silicon Valley and anotherchaperoned by China and braced by its highly capable home grown digitalcompanies Efforts by the USA and like-minded allies to exclude Chinesenetworking equipment suppliers from Western and allied 5G networkswill continue with the US-China trade and technology confrontationshowing little sign of easing and the potential national security risks posedby Chinese hardware increasingly dominating policy debates Howeverthe brunt of this power politics has to be borne by the middle powersand growing economies

413 The Technology Dimension

China is also making headway in shaping international standards foremerging technologies again using its first mover advantage to aid in theintroduction of most of the dual-use technologies In 2015 the Chineseleadership set up a ldquoSpecial Leading Small Group on the Major Projectof Standardization along with the BRI projectrdquo to coordinate the idea ofldquofirst develop then regulaterdquo The major focus of the group was onpromoting Chinarsquos home grown standards Currently China is the onlycountry ahead of the UNrsquos International Telecommunication Unionrsquos ldquo20205G development schedulerdquo Chinese experts are leading the way in the5G group of the International Organisation for Standardisation (ISO)(also called 3rd Generation Partnership Project or 3GPP) by submitting40 per cent of the standards and 32 per cent of the documents It hasbeen estimated that China is the leader in the standardization of 5G theInternet of Things and blockchain technology In June 2018 ISO membersapproved Chinarsquos IoT Reference Architecture (ISO IEC 30141)95 Chinaand the International Telecommunication Union (ITU) have also signed aldquoletter of intent to strengthen Cooperation on Telecommunication andInformation Networksrdquo within the framework of the Belt and Road

95 Kristin Shi-Kupfer and Mareike Ohlberg ldquoChinarsquos Digital Riserdquo MercatorInstitute for China Studies April 2019 see httpswwwmericsorgsitesdefaultfiles2019-04MPOC_No7_ChinasDigitalRise_web_4pdf accessed 10June 2019

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 47: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

46 | AJEY LELE AND KRITIKA ROY

Initiative96 Besides China also holds important positions in the three mainstandard setting bodies namely ITU ISO and IEC (InternationalElectrotechnical Commission)97 This can also be seen as the countryrsquoslong term strategy wherein any kind of restrictions are not put on theChinese products and services in the name of regulations

The standard setting process is crucial as it will determine not just hownetworks would be built but also how money flows between participantsin the technology ecosystem For instance companies whose technologybecomes the industry standard for 5G will receive royalty payments fromother ecosystem participants98 Politics will play a significant role in 5Gstandards setting For instance in the selection of a control channelmodulation standard championed by Chinarsquos 5G leader Huawei whilethe standard had technical merit its approval triggered deliberation withsome tech experts indicating that Chinarsquos burgeoning global economicclout and overall presence at 3GPP were compelling determinants of theconfirmation There is no doubt that Chinese firms backed by Beijingare exerting much more influence in the standards-setting processHowever the USA is not that far behind

414 Security Dimension

There is a lurking fear that China has a backdoor access to many of thedigital infrastructures it constructs In an investigation report brought forthby French newspaper Le Monde China was accused of allegedly insertinga backdoor in the African Union (Chinese built Headquarters) servers thatallowed the copying of confidential data onto servers in Shanghai99 The

96 See note 2597 See note 5198 See note 7599 Abdi Latif Dahir ldquoChina lsquogiftedrsquo the African Union a headquarters building

and then allegedly bugged it for state secretsrdquo Quartz Africa January 30 2018 athttpsqzcomafrica1192493china-spied-on-african-union-headquarters-for-five-years accessed 22 May 2019 The original report by Le Monde can beaccessed here httpswwwlemondefrafriquearticle20180126a-addis-a b e b a - l e - s i e g e - d e - l - u n i o n - a f r i c a i n e - e s p i o n n e - p a r - l e s -chinois_5247521_3212html

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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Page 48: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 47

risk of backdoor access can arise during both software and hardwaredesign and development On the basis of potential threats to nationalsecurity on the grounds of espionage and data theft the USA and Australiabanned the Chinese state-affiliated firms Huawei and ZTE Corporationfrom its 5G mobile network other countries are also reconsidering theirrelationship with these firms100 These threats have also motivated othercountries to rethink their investment plans with Huawei However becauseof the benefit of low cost data networks many countries tend toundermine the security risks Far from being limited to ICT projects thisincreased threat of backdoor access is likely to impact more infrastructuretypes in the future

Chinarsquos mission of becoming a global digital connector and leadingprovider of 5G technology (which would be a catalyst in developingrefined AI technologies like the facial recognition system and autonomousvehicles) to a number of developing states also raises the plausibility ofexporting its Great Firewall model that has demonstrated ruthless efficiencyin cutting off its internet from the outside world thus blocking unwantedinternational headlines and social media platforms Human Rights Watchreports that China has developed an app to exercise control over thepopulation across many regions in the country China has been profuselyinvesting in setting up facial recognition technology for many developingcountries The limited technical capabilities of many of these states oftenfavour China as it will have to directly operate the system and providetraining in the interim period One report has highlighted that all the facialdata collected in Zimbabwe has to be sent to China so that its algorithmcould be refined This means that Zimbabwe may not have exclusivecontrol over its data101

100 Mike Cherney and Dan Strumpf ldquoTaking Cue From the US Australia BansHuawei From 5G Networkrdquo Wall Street Journal August 23 2018 httpswwwwsjcomarticlesaustralia-bans-chinas-huawei-from-5g-networkrollout-1534992631 accessed 23 May 2019

101 Daniel Kliman Rush Doshi Kristine Lee and Zack Cooper ldquoGrading ChinarsquosBelt and Roadrdquo CNAS April 2019 see httpss3amazonawscomfilescnasorgCNAS+Report_China+Belt+and+Road_finalpdf accessed 23May 2019

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
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              • cover backpdf
                • Page 1
Page 49: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

48 | AJEY LELE AND KRITIKA ROY

Additionally its continuous efforts to harness the potential of AI and bigdata technologies indicate that it would soon have the ability to handle ahuge amount of data flow from countries connected via the digital highwayThis would give Beijing greater political influence and advantage in shapingup a new cyber governance model China is also heavily financing a vastnetwork of undersea cables According to research 98 per cent of globaltelecommunication would be relayed through international waters102

Currently Chinese companies are handling nearly 90 undersea cable projectseither as suppliers or owners In fact Huawei Marine has completed overa dozen undersea cables project in South Asia and close to 20 are underconstruction103 Moreover internet users have no say over which cablesystem transmits their data across the globe and just 380 active submarinecables handles global internet traffic via a landing station104 These cablesare vulnerable to cyber intrusion particularly in underdeveloped countrieswhere such tampering cannot be monitored In addition China is thelargest manufacturer of IoT devices mdash that is physical equipmentembedded with sensors that collect data and connect to each other as wellas the broader internet The rapid increase in these allegedly unsecure devicesmay create several vulnerability points for cyber-attacks intelligencecollection industrial control or censorship105 China also recognizes thelikelihood of increasing demand in the space arena and has made quickmoves to grab the market It has been found making focused efforts toengage states in the lsquospace netrsquo and by doing so is increasing the numberof lsquomade in China eyesrsquo in space and its reach of attaining maximumamount of data and intelligence gathering

102 Sabeena Sidiqui ldquoBRI BeiDou and the Digital Silk Roadrdquo Asia Times April2019 see httpswwwasiatimescom201904opinionbri-beidou-and-the-digital-silk-road accessed 28 May 2019

103 Huawei Marine see httpwwwhuaweimarinecomenMarineHomeExperience accessed 28 May 2019

104 Ibid105 US-China Economic and Security Review Commission 2018 Annual Report

see httpswwwusccgovsitesdefaultfilesAnnual_ReportChaptersC h a p t e r 2 0 4 2 0 S e c t i o n 2 0 1 - 2 0 N e x t 2 0 G e n e r a t i o n 20Connectivity_0pdf accessed 28 May 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 50: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 49

Data is indeed the new age oil which is manoeuvring humans governmentsand organisations All require access to humongous information aboutreal-life human behaviour which makes data perhaps the most importantresource in the world Thus Chinarsquos control over a vast amount of data isthe most obvious strategic risk By controlling data flow China canunderstand markets better identify and eliminate local competitors andcarry out commercial research and development thus limiting the capacityof home grown players to reap the economic benefits of data producedin the region This could also pave the way for a new form of colonialismcalled the ldquodata colonialismrdquo wherein raw information is mined processedand used to exercise control throughout the world106 For instance datagiants in Beijing can collect and collate medical and personal records ofofficials in distant countries and use it to manipulate public opinion

Also those who control data would eventually reshape the worldrsquos economicand political future as well as eventually the future of world order Chinarsquosdominance of global communication would also be an opportunity for itto promote its own cyber governance model which runs counter to themodel of free and accountable cyberspace In 2018 a report titled ldquoTherise of Digital Authoritarianismrdquo has China being accused of being thefront runner of abusers of internet freedom and also blamed of exportingits ldquotechno-dystopianrdquo model to other nations 107Egypt for instance hasbeen drawing heavily from Chinarsquos model of cyber governance108 In 2018Egypt passed a cyber crime law that infringes on the individualsrsquo right inthe name of national security109 China has hosted a two week long seminar

106 Yuval Noah Harari ldquoWho Will Win the Race for AIrdquo FP Global Thinkers 2019see httpsforeignpolicycomgt-essaywho-will-win-the-race-for-ai-united-states-china-data accessed 31 May 2019

107 Emily Dreyfuss ldquoThe Internet Became Less Free In 2018 Can We Fight BackrdquoWired December 26 2018 see httpswwwwiredcomstoryinternet-freedom-china-2018 accessed 31 May 2019

108 Tin Hinane El Kadi ldquoThe Promise and Peril of the Digital Silk Roadrdquo ChathamHouse June 2019 see httpswwwchathamhouseorgexpertcommentpromise-and-peril-digital-silk-road accessed 02 June 2019

109 Ibid

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
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      • cover frontpdf
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                • Page 1
Page 51: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

50 | AJEY LELE AND KRITIKA ROY

on ldquoCyberspace Managementrdquo for officials of countries along the Beltand Road Initiativerdquo besides conducting sessions on its systems ofsurveillance and censorship for media officials from Morocco Libya andEgypt110 Promoting its own model of cyber governance (that is sovereigncyberspace) enables China to protect its own critical informationinfrastructure from unwanted cyber intrusion and foreign data access Atthe same time controlling data would allow the country to monitorenterprises and citizens to enforce compliant and conformist behaviour

415 The Geostrategic Dimension

Another important aspect of Chinarsquos digital and space strategy is civil-military integration which has been a national strategy since 2014 It hasbeen debated that the new age Silk Road would play a pertinent role in theformation of strategic alliances and security ties for China This would aidnot only in transforming the Asian security dynamic but also in creating astrategic space for China Becoming a technology superpower is also closelyknitted into Chinarsquos ambition of becoming a leader in dual-use disruptivetechnologies thereby advancing cyber and space capabilities weaponizingAI gaining quantum computing supremacy and data colonialism At thesame time Some BRI investments could advance potential militaryadvantages for China

An important point of contention has been Chinarsquos efforts to merge itscommercial space industry with its defense industrial base which wouldaid in accelerating innovation in outer space systems Under the ambit ofBRI Pakistan is the leading example of how Chinese projects are beingused to give Beijing both favour and leverage among its clients111 Pakistan

110 Abdi Latif Dahir ldquoChina is exporting its digital surveillance methods to Africangovernmentsrdquo Quartz Africa November 2018 see httpsqzcomafrica1447015china-is-helping-african-countries-control-the-internet accessed on 08June 2019

111 Maria Abi-Habib ldquoChinarsquos lsquoBelt and Roadrsquo Plan in Pakistan Takes a MilitaryTurnrdquo The New York Times December 19 2018 see httpswwwnytimescom20181219worldasiapakistan-china-belt-road-militaryhtml accessed 19 June2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 52: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 51

has allowed Chinarsquos BeiDou satellite navigational System for military servicesto ensure precise guidance for missiles ships and aircraft112

In the coming years the IoT and related developments that incorporatemore sophisticated sensing technology would be integrated into smartcities electric grids and other connectivity infrastructure that could boostproductivity However the derelict security measures and universalconnectivity of IoT devices create numerous points of vulnerability thatChina can exploit to hold any nationrsquos critical infrastructure businessesand individuals at risk These types of risks will grow as IoT devicesbecome more complex more numerous and embedded within existingphysical structures The size speed and impact of malicious attacks againstIoT devices will intensify with the deployment of 5G Smart infrastructureor cities can either be an asset or threat depending on what is being collectedand who is watching Moreover ldquosmartrdquo infrastructure could be convertedinto a surveillance infrastructure during a wartime situation

A common understanding has been that future wars would be foughtusing data and high-end technologies Undisputedly future military victorieswould be determined by those states that conceive design build andoperate a mix and match of different information based technologies todeliver new combat power Chinarsquos control of both the digital and spacedomain also give weight to the fact that China may be able to controlfuture warfare dynamics

112 See note 92

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 53: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

52 | AJEY LELE AND KRITIKA ROY

51 LEARNING AND IMPLICATIONS FOR INDIA

India was one of the early critics of Chinarsquos BRI venture as it infringesIndiarsquos territorial integrity and sovereignty113 There was also scepticismregarding Chinarsquos hidden strategic motivations that kept the country distantChinese development of the digital and space Silk Road has left the countryin a strategic dilemma since the country unwantedly finds itself tied withChinese telecom giants like Huawei 114 Even the south Asian neighboursof the country including Nepal Pakistan and Sri Lanka have deep relianceon Chinarsquos telecom companies This brings into question the implicationsof not being the part of the BRI and the options available for the countryIndiarsquos intent of staying away from the BRI needs to be backed by its ownstrategy

India does realize that advances in digital infrastructure and outer spacewould pave the way for social commercial and strategic benefits Forfuture growth both the digital and the space medium are critical factorsespecially due to the dual use of many of the technologies India is not akey player in technology development or the manufacture of digital

SECTION V

113 ldquoOfficial Spokespersonrsquos Response to a Query on Participation of India in OBORBRI Forumrdquo MEA May 13 2017 see httpsmeagovinmedia-briefingshtmdtl28463Official+Spokespersons+response+to+a+query+on+participation+of+India+in+OBORBRI+Forum accessed 24September 2019

114 P K Mallick ldquo5G Huawei and Indiardquo VIF 2019 see httpswwwvifindiaorgsitesdefaultfiles5g-huawei-and-india_0pdf accessed 24 September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 54: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 53

equipment115 but the country has joined the race for 5G QuantumComputing AI and other emerging technologies

The country is also taking strides in the outer space dimension mdash includingbuilding different types of satellites (ranging from Earth observation tostrategic surveillance) rockets (capable of placing satellites in differenttypes of orbits) space telescopes undertaking deep space and planetarymissions and probably also sending humans into space in a couple ofyears from now116 Every mission in the space domain has been atechnological challenge and has been accomplished with a high degree ofself-reliance and capability despite many international technologyembargoes117 The success of the Mangalyaan mission speaks volume ofthis fact Not only has the country been able to explore outer space in amore economical way but it has also become self-reliant and assists manynations in their space projects118 In 2017 India launched the South AsianSatellite to boost regional communication and improve disaster linksamongst its six neighbours that has helped the country to carve a uniqueplace in space diplomacy119

In order to set a roadmap for the rollout of 5G the government of Indiahad set up a high-level forum which in its report suggested the early

115 Cellular Operators Association of India Annual Report 2017-18 p 11 see httpswwwcoaicomsitesdefaultfilesAnnual20Report20COAI202017-18pdf accessed 22 September 2019

116 Dinesh C Sharma ldquoSpace Race 20 ISRO now Stands at the Cusp of NextChangerdquo DownToEarth May 06 2019 see httpswwwdowntoearthorginnewsscience-technologyspace-race-2-0-isro-now-stands-at-the-cusp-of-next-change-64257 accessed 25 September 2019

117 Ibid118 Ajey Lele ldquoMangalyaanrsquos Mars Orbit One Giant Leap for India One Small Step

for Mankindrdquo The Wall Street Journal September 24 2014 see httpsblogswsjcomindiarealtime20140924mangalyaans-mars-orbit-one-giant-leap-for-india-one-small-step-for-mankind accessed 25 September 2019

119 South Asian Satellite to boost regional communication Press InformationBureau Government of India May 07 2017 see httpspibgovinnewsiteprintreleaseaspxrelid=161611 accessed 25 September 2019

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 55: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

54 | AJEY LELE AND KRITIKA ROY

allocation of the 5G spectrum increasing the quantum of spectrumavailable and lowering spectrum pricing The panel had also suggestedthree initiatives mdash attracting global 5G conference events to India settingup national 5G events and the creation of a comprehensive programmeto develop India-specific 5G applications Moreover the country hasrepeatedly stated its ambition of ldquonot missing the 5Grdquo bus 120

Additionally the Department of Science and Technology (DST) has beenworking on a national plan to fund quantum computing research 121 ThePhysics departments at the Indian Institute of Science Bengaluru and theHarish Chandra Research Institute Allahabad have also forayed into thetheoretical aspects of quantum computing A DST official has said ldquoThetime has come to build one [quantum computer]rdquo122 AI is another sectorwhere India is making remarkable progress India ranks third in the worldin terms of high-quality research publications in the field123

India is also taking steps towards laying the foundations in many emergingtechnologies sector although it still has a long way to go A model similar

120 Navadha Pandey ldquoIndiarsquos Game Plan to Switch on 5G Connectionsrdquo LiveMintOctober 4 2018 see httpswwwlivemintcomIndustryKf4PMD5CxQMB5AKR6gBcEPIndias-game-plan-to-switch-on-5G-connectionhtml accessed 24 September 2019

121 Hari Pulakkat ldquoHow India is contributing in Development of New-AgeComputersrdquo The Economic Times November 13 2018 see httpseconomictimesindiatimescomtechhardwarehow-india-is-contributing-in-development-of-new-age-computersarticleshow66598881cms accessed 22September 2019

122 Richa Bhatia ldquoQuantum Computing Researchers Next Breed of Tech ExpertsIndia Is Going To Fall Short Ofrdquo [Author may please re-check This does notseem accurate] Analytics India October 23 2018 see httpswwwanalyticsindiamagcomquantum-computing-researchers-next-breed-of-tech-experts-india-is-going-to-fall-short-of accessed 24 September 2019

123 Jacob Koshy ldquoIndia Ranks Third in Research on Artificial Intelligencerdquo TheHindu January 18 2019 see httpswwwthehinducomsci-techscienceindia-ranks-third-in-research-on-artificial-intelligencearticle26030596ece accessed 24September 2019

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 56: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 55

to that of space could be used for promoting digital diplomacy Howeverthe major challenge has been the lack of the manufacturing sector Mostof the infrastructure for these technologies would most likely rest uponeither technology imports or on equipment made by foreign vendors inIndia Nevertheless the country has a huge market that could be used aseconomic leverage to achieve strategic objectives Control over investmentsprovides the Indian state an economic tool to attain political and strategicobjectives The Indian Government must keep this in mind while framingrules attracting foreign investment and regulating the participation of foreignfirms in any sector

Even technology collaboration should be given serious considerationwherein technology giants of different nations could be invited to buildcapacity in India This will give a positive push to ldquoMake in Indiardquo and theldquoDigital Indiardquo movement However India would need to lay down itsown laws on data integrity encryption and access for law enforcement toelectronic data the Internet of Things and digital payments to ensure securityas well as development together

India should focus on a few niche areas and ensure better implementationThe country can help facilitate alternative paths of growth for its immediateneighbours by leveraging its links with its extended neighbourhood Thisshould be done in ways that are transparent and mutually beneficial mdash incontrast to Chinese projects that are seen as debt-traps and one-way roadsto Beijingrsquos domination This will help re-imagine a joint destiny of growthfor India and its immediate neighbours which will build more sustainablerelationships and make the neighbours partners in Indiarsquos rise There is aneed to promote inclusive and affordable connectivity that is secure reliableand mutually beneficial It could become difficult for India to resist Chinesetechnological flows but there needs to be a careful assessment of domesticneeds the ability to adopt new technologies and the cost of innovation ifIndia wants to attain competitive advantage in the long run

52 CONCLUSION

From the Chinese perspective the Belt and Road Initiative is in harmonywith the philosophical notion of a ldquocommunity of shared destinyrdquoHowever its overall expanse in general and its growing control over thedigital and space domain in particular allows Beijing to bend this common

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 57: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

56 | AJEY LELE AND KRITIKA ROY

destiny towards satisfying its own geopolitical geoeconomic andgeostrategic ambitions

China is incessantly tapping new markets and technology in ways thatallows Beijing to overpower competitors in terms of sheer scale it canprey on smaller economies and possesses tools to control and manoeuvretheir national policies Such an arrangement creates long-term dependencieson China The contentious presence of Chinese agencies in various globalmarkets not only allows them to access such (continuously flowing) databut also allows them to use it for various other purposes like creating ahuge database of information

Chinarsquos increasing commercial presence across the globe is causing criticaldependence at the same time as this presence begets substantial uncertaintiesand potential security risks With rapid advances of China in the outerspace arena the country would soon become champions in providingindigenously owned and operated telecommunications and remote-sensingsatellites to a number of countries This is a part of Beijingrsquos overalldiplomatic outreach to these countries Satellites are a channel throughwhich countries can gain easy access to information but they are alsovulnerable to cyber hacks Just as the digital infrastructure funded and builtby China facilitates government-led surveillance censorship and evenespionage in some cases a space-based Silk Road may well increase Chinarsquosinfluence over many BRI countries Additionally the BeiDou navigationsystem that may be granted under the ambit of BRI may further aidChina to gather data at a global scale Naturally the dual-use nature ofspace and digital technologies means that China can provide potentialmilitary assistance under the aegis of assistance to developing nations incritical regions While the global standards and norms governing bothdigital and space technologies are yet to fully mature there have beennumerous cases of technology being misused in order to influence andcontrol public opinion The effort of China at promoting the concept ofldquoInternet sovereigntyrdquo mdash which allows the State to control what citizenscan access online mdash are worrisome Equally problematic are the effortsof various national governments to direct foreign firms that are acquiringthe data of their nationals to store such sensitive and private informationon servers located within their national borders The governments are alsoseeking unlimited access to such data on the pretext of lsquonational securityrsquo

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 58: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 57

Despite the hue and cry on security concerns China continues to dominatein many markets and its services are seen as cost-effective and attractiveThis is because of the simple concept of need and accessibility mdash Chinais able to understand the requirements of developing economies andprovides productsservices accordingly

It is also important to note that all the security concerns varying from datatheft manipulation to setting the standard for emerging technologies isnot exclusive to China There have been times when even the US oftenseen as the pall bearer of the free flow of internet and data has beenblamed for snooping and the violations of privacy Indeed the informationera is encapsulated in the constant dilemma of national security and privacyrights Thus the current debate calls nation states to take an approachwhere everyone gets the pie even though the size of the pie may differThis is largely about commercial competition Countries with few resourcesdeficient ICT and space infrastructure or limited political will find Chinaas a financial force-multiplier without whom it might have taken weakereconomies another couple of decades to come at par with the developedeconomies at all levels This dependency does not prohibit states fromhaving enough oversight on these developments to ensure that the toolsare not misused The innovation of any kind needs to be based on reciprocaland transparent cooperation When someone builds you a security systemyou should change the password It is important for countries to buildand ascertain secure supply chains It is also pertinent to minimize the risksby testing and verifying the security aspects of the imported equipmentand safeguard balanced reciprocal conditions with regards to China Atthe same time it is necessary to devise effective and autonomous policiesto ensure the system of effective checks and balances Another importantmove has to be towards data localisation rather than allowing the data tobe stored in other countries where it is susceptible to attacks and misuse

Middle powers can become regulators as they control which firm wouldestablish the technology in their country and on what grounds Countriescould leverage the opportunity to bargain a better price from global playersfor the roll out of technologies like 5G services or the developmentsatellite launch vehicles There also needs to be a push towards becomingself-sufficient and allowing national enterprises to thrive in a fair competitiveenvironment while learning the trades of the play from China

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 59: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

58 | AJEY LELE AND KRITIKA ROY

It is important to understand that the impact of Chinarsquos growing cloutwould not only envelop the BRI states but also put indirect pressure onthe non-BRI nations to join the initiative Shakespeare rightly said ldquoWhatrsquosin a namerdquo Many of the projects with non-BRI countries are on a bilateralbasis however once finished they can easily be drawn under the blanketof Chinarsquos BRI to garner additional benefits mdash like using Chinarsquosnavigational services via BeiDou This also shows the bifurcation of theworld into two parts wherein China is trying to create a new cost effectivealternative and challenging the established rule of order With so manycountries geo-economically involved with China it would be really difficultto not allow China to have its way China fully understands that the vehiclefor BRI connectivity and monitoring is going to the assets in space Hencethey are making significant investments into communication and earthobservation satellites Appreciating that the future of internet dependentsnot only on the sea based hub of cables for connectivity but also onsatellite based connectivity China is developing constellations of low earthorbit satellites for internet connectivity

China is often seen as an emerging ldquorevisionistrdquo power that is fundamentallychallenging the way global security is underwritten124 There are manyoptions for the BRI states that could allow them to be in a mutuallybeneficial position with China mdash like using Chinese assistance for growthand development but at the same time ensuring their own safety Anotheris placing eggs in different baskets mdash that is allowing various states toinvest in the digital and space sector for growth and development butagain writing onersquos own rules of the game In international relations nationalinterest always remains paramount and countries tend to bend towardsthe side that gives those benefits at cost-effective rates But again countriesshould be vigilant enough to convert the cheap and easy into secure andprofitable gains Thus it is pertinent for countries to ensure that BRI fitsinto their own national and regional development plans while ensuringBRIrsquos compliance with a rules-based inclusivity

124 Scott L Kastner and Phillip C Saunders ldquoIs China a status Quo or RevisionistState Leadership Travel as an Empirical Indicator of Foreign Policy PrioritiesrdquoInternational Studies Quarterly March 2012 Vol 56 No 1 pp 163-177

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 60: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 59

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 61: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

60 | AJEY LELE AND KRITIKA ROY

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 62: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

ANALYSING CHINArsquoS DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 61

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 63: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

62 | AJEY LELE AND KRITIKA ROY

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1
Page 64: Analysing China’s Digital and Space Belt and Road Initiative · ANALYSING CHINA’S DIGITAL AND SPACE BELT AND ROAD INITIATIVE | 5 From 25 to 27 April 2019, Beijing welcomed leaders

Ajey Lele is Senior Fellow at the Institute for Defence Studies and Analyses

Kritika Roy is a Research Analyst at the Institute for Defence Studies and Analyses

The recently held second Belt and Road forum in April 2019 based on the theme ldquoShaping a Brighter Shared Future gained considerable momentum in the world community BRI has been an ever evolving concept that has changed considerably since its inception in 2013 It has generated a blend of optimism and consternation around the world This paper complements the existing literature on BRI while highlighting the need to involve the digital and space sector as that allows China to have greater flexibility to expand both business and influence over the regions of its interest Furthermore this paper underscores the likely implications for Chinarsquos Digital and Space expansion in economic geopolitical technological security and geostrategic dimensions The paper also reflects on the impact of the expansion of Chinas digital and Space BRI on India in the foreseeable future and lessons for India The paper concludes by recommending a balanced approach that allows mutual benefit and growth for all the BRI as well as non-BRI states

Institute for Defence Studies and AnalysesNo1 Development Enclave Rao Tula Ram Marg

Delhi Cantt New Delhi - 110 010

Tel (91-11) 2671-7983 Fax (91-11) 2615 4191

E-mail contactusidsain Website httpwwwidsain

  • cover backpdf
    • Page 1
      • cover frontpdf
        • Page 1
          • cover backpdf
            • Page 1
              • cover backpdf
                • Page 1