Beyond the great firewall: EU and US responses to the China challenge in the global digital economy

Abstract

ABSTRACT China’s Great Firewall was designed to control information flows to keep citizens in and the wider world out. Consequently, until recently China’s economic ascendancy was not mirrored in the global digital economy. However, China’s increasing digital footprint and championing of national technology firms present numerous economic and security challenges for the EU and US as the dominant digital powers. This paper investigates how growing perceptions of China-based threats in the digital domain have shaped EU (including Member State-level) and US policies. Two pertinent cases – Huawei (hardware provider) and TikTok (digital platform) – illustrate how threat perceptions have catalysed securitization moves to restrict Chinese firms’ roles within national digital economies. Western policymakers are increasingly concerned about China’s capacity to weaponize technologically interdependent relationships by exploiting its firms’ presence within Western networks. Yet significant differences between EU Member States’ perceptions precluded both a uniform EU-level response and more extensive transatlantic cooperation.