Analysis by Péter Goreczky
The economic development of Southeast Asia is increasingly dependent on establishing a cutting-edge digital infrastructure. In some segments of digital infrastructure, for example, data centre operations, the presence and strategy of the two nations’ tech companies in Southeast Asia has mainly been driven by market considerations. As for smart and safe city solutions, submarine internet cables, and 5G infrastructure, investment projects are linked to security concerns to a greater extent and are increasingly affected by the tech rivalry of the two great powers. The maze of geopolitical and business motivations and interests makes it more challenging for ASEAN nations to navigate the tech war and face the dual challenge of rapidly developing the digital infrastructure and avoiding taking sides in tech decoupling. The lack of global legislation on digital issues enables great tech powers to push their own data governance models. An intensifying clash between the US and China over data governance concepts would pose a risk to the evolution of adequate local legislation in the ASEAN region.
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