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1. Digital Entanglement; Lessons Learned from China’s Growing Digital Footprint in South Korea

Author:
Kristine Lee, Martijn Rasser, Joshua Fitt, and Coby Goldberg
Publication Date:
10-2020
Content Type:
Special Report
Institution:
Center for a New American Security
Abstract:
The South Korean experience is an illustrative case study of digital entanglement with China. This paper focuses on South Korea’s 5G networks for the purposes of scoping, but the spotlight on telecommunications networks offers just one window into a broader trend of technology and economic interdependencies between Seoul and Beijing. In particular, the paper’s focus on 5G illuminates four central observations that could also apply to other technology areas: (1) the U.S.-China strategic competition has wedged South Korea between its most important ally and its largest trading partner; (2) geopolitical risk assessments are not top of mind in South Korea’s technology policymaking calculations; (3) the country’s political leadership largely defers to private industry on the use of Chinese equipment; and (4) South Korean privacy regulations remain relatively fluid and are evolving both to meet domestic pressures and to generate new market opportunities. These trends are evident in the history of South Korea’s economic entanglement with China and the risk of coercion carried with it. Ongoing entanglement with digital infrastructure—and 5G networks in particular—increases the potential for and reach of adverse economic statecraft by Beijing and will make it more difficult and costly to unravel.
Topic:
Science and Technology, Communications, Bilateral Relations, COVID-19, and 5G
Political Geography:
China, Asia, and South Korea

2. Open Future: The Way Forward on 5G

Author:
Martijn Rasser and Ainikki Riikonen
Publication Date:
07-2020
Content Type:
Special Report
Institution:
Center for a New American Security
Abstract:
Communication networks are the central nervous system of the 21st century economy. The fifth generation of wireless—5G—will be essential to and inseparable from all we do. In many ways, we are already there. What for most was an abstract concept became all too real during the COVID-19 crisis. The coronavirus pandemic has underscored the critical importance of communication networks: They are integral to our daily lives and our ability to function economically and as a society. Shutdowns of offices, schools, and stores have meant turning to apps to work, learn, and buy. Frontline medical workers and vaccine researchers have consulted colleagues via teleconference to get the latest insight and advice on combating the virus. Being connected means resilience, coping, surviving. Getting 5G right is all the more urgent. Next-generation 5G networks will enable telemedicine, self-driving cars, and a proliferation of Internet of Things devices to fuel the future digital economy. Secure, reliable 5G networks will be essential elements of national infrastructure. Policymakers in Australia, Japan, and Vietnam understood this early on and took decisive action to secure their 5G networks. U.S. officials, slower out of the gates, are now the loudest voice on the risks of having equipment from untrusted vendors in 5G networks. The spotlight is brightest on the risks that Huawei poses to national security, including the threat of espionage or disruption. Given the Chinese Communist Party’s ability to exercise control over Huawei, there is justifiable concern over data integrity on networks that deploy Huawei equipment. More serious is the potential to use 5G equipment as a vector to cripple critical infrastructure. Such risk is not only about communications—5G will be the backbone of controls needed for power grids, water supplies, and transportation infrastructure. Despite this, the United States has had only limited success convincing its allies to join it in banning Huawei. The United States has the opportunity to regain momentum by taking a fresh approach to 5G in the aftermath of the pandemic. In addition to the broader appreciation for the criticality of reliable communication networks, Beijing’s coronavirus cover-up and clunky attempts at soft power have hardened public opinion toward China around the world. The economic fallout of the pandemic will likely slow 5G deployments globally, curtailing the urgency with which many operators approached the issue. At the same time, the first commercial projects centered on technological alternatives to the predominant 5G approach are being deployed. This confluence of events presents the United States and like-minded countries an opening to promote an alternative approach that could lead to a paradigm shift in the industry: wireless infrastructure built on a modular architecture with open interfaces. A modular architecture allows an operator to choose multiple vendors for a range of offerings, rather than being locked in with a single large integrated vendor. Open interfaces—the ability of equipment from any vendor to work with that of another—make that possible. Such a shift means upending the industry status quo that is dominated by four telecommunications equipment providers: China’s Huawei, Finland’s Nokia, Sweden’s Ericsson, and South Korea’s Samsung. Whereas other proposed responses to the Huawei dilemma and the problematic current state of competition in the telecommunications industry fiddle at the margins, switching to an industry centered on open interfaces would change the game altogether. A restructured industry based on open interfaces would directly address the prevailing concerns over untrusted vendors such as Huawei and the broader inefficiencies of the industry. There are distinct advantages to be gained in security and interoperability, supply chain resiliency, probable cost savings, and the opportunity to stimulate much-needed competition in the sector. Taken together, these advantages do much to blunt Beijing’s industrial policies that have enabled Huawei’s predatory anti-competitive practices.
Topic:
National Security, Science and Technology, Communications, COVID-19, and 5G
Political Geography:
China, Asia, North America, and United States of America

3. Rising to the China Challenge: Renewing American Competitiveness in the Indo-Pacific

Author:
Ely Ratner, Daniel Kliman, Susanna V. Blume, Rush Doshi, Chris Dougherty, Richard Fontaine, Peter Harrell, Martijn Rasser, Elizabeth Rosenberg, Eric Sayers, Daleep Singh, Paul Scharre, Loren DeJonge Schulman, ​Neil Bhatiya, Ashley Feng, Joshua Fitt, Megan Lamberth, Kristine Lee, and Ainikki Riikonen
Publication Date:
01-2020
Content Type:
Special Report
Institution:
Center for a New American Security
Abstract:
The United States and China are locked in strategic competition over the future of the Indo-Pacific—the most populous, dynamic, and consequential region in the world. At stake are competing visions for the rules, norms, and institutions that will govern international relations in the decades to come.1 The U.S. government aspires toward a “free and open” Indo-Pacific, defined by respect for sovereignty and the independence of nations, peaceful resolution of disputes, free and fair trade, adherence to international law, and greater transparency and good governance.2 For the United States, successful realization of this regional order would include strong U.S. alliances and security partnerships; a military able to operate throughout the region, consistent with international law; U.S. firms with access to leading markets, and benefiting from updated technology standards, investment rules, and trade agreements; U.S. participation in effective regional and international institutions; and the spread of democracy and individual freedoms in the context of an open information environment and vibrant civil society.3 By contrast, China is driving toward a more closed and illiberal future for the Indo-Pacific, core aspects of which would undermine vital U.S. interests.4 Key features of China-led order would include the People’s Liberation Army controlling the South and East China Seas; regional countries sufficiently coerced into acquiescing to China’s preferences on military, economic, and diplomatic matters; an economic order in which Beijing sets trade and investment rules in its favor, with dominance over leading technologies, data, and standards; and Beijing with de facto rule over Taiwan and agenda-setting power over regional institutions. The order would be further characterized by weak civil society, a dearth of independent media, and the gradual spread of authoritarianism, reinforced by the proliferation of China’s high-tech surveillance state. The net result would be a less secure, less prosperous United States that is less able to exert power and influence in the world.5 Ultimately, the competition between the United States and China in the Indo-Pacific is a contest over which of these futures will come closer to fruition, even as neither is likely to attain in its entirety. In the two years since the 2017 National Security Strategy and 2018 National Defense Strategy aptly identified this competition over the regional order in Asia, the U.S. government has taken initial steps toward its goal of a free and open region. On balance, however, critical areas of U.S. policy remain inconsistent, uncoordinated, underresourced, and—to be blunt—uncompetitive and counterproductive to advancing U.S. values and interests. This independent assessment—mandated by the U.S. Congress in the 2019 National Defense Authorization Act—is intended to help close the considerable gap between the current administration’s stated aspirations for a free and open Indo-Pacific and the actual implementation of policies to advance that vision. Specifically, Congress called for “an assessment of the geopolitical conditions in the Indo-Pacific region that are necessary for the successful implementation of the National Defense Strategy,” with a particular focus on how to “support United States military requirements for forward defense, assured access, extensive forward basing, and alliance and partnership formation and strengthening in such region.”6 This report examines how the U.S. government as a whole, not just the Department of Defense, can realize these outcomes. Although the focus of this assessment is on the Indo-Pacific, it is critical to underscore that the China challenge is a global phenomenon, and many of the actions recommended in this report should be taken to bolster U.S. competitiveness beyond the region. Consistent with the bipartisan mission of the Center for a New American Security, the report’s authors have collectively served on both sides of the aisle in Congress and in the administrations of Presidents George W. Bush, Barack Obama, and Donald Trump at the White House, State Department, Defense Department, Treasury Department, Central Intelligence Agency, and Office of the U.S. Trade Representative. Included herein are nearly a hundred specific and actionable policy recommendations across critical vectors of American competitiveness in the Indo-Pacific. Before turning to these recommendations, the remainder of this section describes six core principles that undergird the assessment and should form the foundations of U.S. strategy in the Indo-Pacific region.
Topic:
Security, Foreign Policy, Partnerships, and Strategic Competition
Political Geography:
China, Asia, North America, United States of America, and Indo-Pacific