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Amid the China-US Competition, Beware of Data Colonialism

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Amid the China-US Competition, Beware of Data Colonialism

As China and the U.S. compete to build digital infrastructure, they are intentionally fostering dependencies that strip away developing nations’ digital sovereignty.

Amid the China-US Competition, Beware of Data Colonialism
Credit: Depositphotos

“Data colonialism” may not yet have achieved the same prominence in our political lexicon as its older, more traditional counterpart, but its insidious impact on the Global South is every bit as alarming. 

Today, Western and Chinese tech giants don’t bother with the theatrics of military conquest. Instead, they carve out new forms of digital dependency across Africa and Southeast Asia with something far more subtle, almost innocuous – digital infrastructure. Beneath polished rhetoric of development and connectivity, these deals slowly but surely strip away nations’ digital sovereignty, quietly eroding their ability to chart an autonomous course in policy.

At the core of this modern colonialism lies the increasingly urgent issue of data sovereignty. Who, after all, commands the vast reservoirs of data flowing through these foreign-built networks? Perhaps more pressing, where does this data end up? Under whose jurisdiction does it fall? 

When a country hands over the control of its digital infrastructure to outside forces, it does more than exchange capital for services; it risks delivering its citizens’ most sensitive information – government records, financial data, personal details – into foreign hands. Without strong legal frameworks like the European Union’s GDPR to safeguard data privacy, nations may be at the mercy of tech giants who operate in legal twilight zones, beyond the reach of national law.

This reliance on external actors transcends data control. As foreign-built networks proliferate, nations become ensnared in specific technological ecosystems, trapped by the staggering costs of switching providers. The dream of cultivating a robust, homegrown tech industry, which might one day stand on its own, fades into the background, overshadowed by the juggernaut of multinational corporations. What begins as a partnership all too often culminates in dependency – an all-too-familiar tale, recast in the digital age.

The economic consequences are grim. Digital infrastructure projects may provide an illusion of growth, but the real prize – data, along with profits – flows out of the country. Jobs are created, but not in the high-skilled sectors needed for sustained development. Local tech companies, unable to match the financial muscle and technological prowess of global players, are pushed aside. The economy becomes chained to foreign interests that care little for a nation’s future, so long as balance sheets remain healthy. What looks like progress on paper is, in reality, little more than a surrender of a nation’s digital future to outside forces.

The situation grows more convoluted due to geopolitical ramifications. The involvement of Western and Chinese firms complicates matters, as countries now navigate the tech rivalry between the United States and China. These tech giants aren’t just selling cloud services or building mobile networks – they’re exporting influence, leveraging control, and enabling potential surveillance. At stake here isn’t solely technological independence, but national security.

The Global South, lacking the regulatory capacity to manage these digital systems, is ill-prepared for such a battle. Data protection laws are weak or unenforced, as overstretched regulatory bodies struggle to keep up global tech complexities. The rise of digital services, many evading traditional tax structures, leaves governments scrambling to capture value from these ethereal economic players. It’s an age-old dynamic: the powerful walk away with the spoils, and the host nations are left holding the burden.

Take Huawei’s smart city projects in Kenya as a prime example. These initiatives implemented surveillance systems in Nairobi and Mombasa, promising improved urban management and public safety. Yet troubling questions linger: How much of the collected data reaches Chinese authorities? What long-term impact will this surveillance have on privacy and social control? Who bears the financial burden of maintaining and upgrading these systems? 

Similar anxieties arise from Facebook’s Free Basics program in Southeast Asia. Marketed as a benevolent effort to provide free internet access, others see a darker side. Critics contend that Free Basics creates a “walled garden” – a restricted, curated version of the internet that stifles local innovation and hands Facebook control over eye-watering amounts of user data in emerging markets. Rather than cultivating connectivity, it entrenches corporate dominance, turning philanthropy into profit and limiting the digital self-sufficiency of entire regions. 

Similarly, Google’s fiber optic cable projects in Africa promise faster, cheaper internet. As Google quietly builds the digital backbone of Africa’s internet infrastructure, we must ask: at what price? African nations may become increasingly subordinate to Google’s services, finding it harder to develop their own networks or promote local content. The lure of connectivity may come with strings attached – strings that could tether the continent’s digital future to the interests of a corporate giant.

The solutions are neither simple nor swift. Developing nations must tread carefully, welcoming the lure of digital development while guarding their sovereignty. Strengthening data protection laws and regulatory capacity must be the starting points. Data localization, though difficult to implement, holds the promise of keeping sensitive information within national borders, under local control. 

No single nation can stand alone in this fight. Regional cooperation offers hope of countering the influence of global tech giants. Promoting open standards allows countries to avoid being locked into a single technological ecosystem, boosting competition and reducing reliance on foreign entities. Nurturing local tech ecosystems ensures that the benefits of digital infrastructure are equitably distributed.

To address the hidden costs of digital infrastructure deals, we must adopt a broader perspective beyond short-sighted promises of economic growth. At stake is national autonomy. Nations in the Global South must control their digital futures as global connectivity reshapes the old power dynamics. Global tech giants may offer development and modernization but rarely mention the long-term price. The true cost is the slow compromise of sovereignty, shackling nations for generations.

For Global South policymakers, the task is clear: They must go beyond negotiating better deals. They must defend their national interests in an era where real power lies in controlling data, infrastructure, and ecosystems. When foreign corporations dominate telecommunications and data storage, the ability to craft digital policies, protect citizen privacy, and cultivate homegrown industries is at risk.

Countries that succumb to digital dependency will see their options shrink over time. Relying on external infrastructure erodes the possibility of fostering local technological capabilities. Local startups, already struggling to compete with multinationals, are sidelined, and profits flow out of the country instead of being reinvested. Far more troubling, however, is the foreign control over critical infrastructure. This isn’t purely economics – it strikes at the heart of national security. The potential for surveillance and manipulation by outside powers is a threat, leaving nations vulnerable to digital colonialism. 

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