April 13, 2021
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China’s Digital Silk Road (DSR) was launched in 2015 as a component of Beijing’s vast vision for global connectivity, the Belt and Road Initiative (BRI). Like the BRI, the DSR is not monolithic and involves many actors at all levels across the Chinese public and private sectors. It is amorphous and the line between official and unofficial DSR projects is often blurry. Comprehensive data on DSR investments is difficult to come by. According to one estimate, by 2018, DSR-related investments in digital infrastructure projects outside of China had reached $79 billion.
The DSR aims to improve digital connectivity in participating countries, with China as the main driver of the process. On the macro level, the DSR is about the development and interoperability of critical digital infrastructure such as terrestrial and submarine data cables, 5G cellular networks, data storage centers, and global satellite navigation systems. In one of the most recent moves, China completed the launch of its global satellite system, BeiDou, which, in some regions, is more accurate than the United States’ global positioning system (GPS). In Asia, Pakistan, Laos, Brunei, and Thailand are among the countries that have adopted BeiDou, and there is growing use in West Asia (the Middle East) and Africa. At the micro level, the DSR promotes connectivity between local businesses and consumers and among businesses and consumers. Examples include e-commerce, taxi-hailing, fintech (financial technology), and edtech (education technology) platforms and apps, as well as hardware such as routers, smartphones, and PCs.