Digitization has become a key driver of global power shifts. It not only influences economic and social developments, but also geopolitical relations and security strategies. In this blog article, we examine current geopolitical developments in relation to digitalisation, with a particular focus on the European Union (EU) and relations with the USA, Russia and China.
Digital technologies offer countries the opportunity to strengthen their economic competitiveness and expand their global influence. Infrastructure projects (e.g. 5G networks), data sovereignty, cyber security and technological standards play a decisive role here.
The European Union: Strategy and Challenges
Digital Sovereignty and Strategic Autonomy
In recent years, the EU has been increasingly striving for digital sovereignty in order to become more independent of non-European technology providers. Initiatives such as the Digital Markets Act (DMA) and the Digital Services Act (DSA) are intended to create fair competitive conditions and limit the power of large US tech companies.
The aim of the DMA is to limit the market power of large platforms (‘gatekeepers’). In future, companies such as Alphabet, Apple, Meta and Amazon will have to comply with rules that prevent them from favouring their own services over other competitors. Among other things, the DMA obliges gatekeepers to open interfaces for third-party providers, facilitate the transfer of data between platforms and define clear rules for app stores and search engines.
The DSA is aimed at all online services with a focus on user protection and transparency. In future, platform operators will have to proactively remove illegal content, report on their content moderation and assess the risk of systemic disinformation. Larger platforms will also be subject to strict supervisory obligations, including independent audits and the right for users to receive explanations on algorithmic recommendations.
Investments in Digital Infrastructure
With the EU digital package (Digital Decade Programme), the EU is defining binding targets for digital infrastructure, skills, digital public services and corporate digitalisation by 2030. The core components are the expansion of gigabit networks, the promotion of high-performance computing and quantum infrastructure, investment in artificial intelligence (AI) and digital skills as well as support for small and medium-sized enterprises.
Cyber Security and regulatory Measures
The EU is strengthening its cyber defence capabilities through the EU Cybersecurity Act and the Network and Information Security (NIS2) Directive.
The EU Cybersecurity Act establishes the EU Agency for Cybersecurity (ENISA) as the central authority for cybersecurity in Europe. It introduces an EU-wide certification framework for information and communication technology (ICT) products, services and processes. The aim is to create uniform security standards, strengthen the trust of companies and consumers in digital solutions and increase the market acceptance of secure products.
As the successor to the first NIS Directive, NIS2 significantly expands the scope of application. In addition to operators of critical infrastructure (e.g. energy, transport, healthcare), large digital service providers, digital platform providers and manufacturers of critical hardware are now also covered by the regulations. Companies must establish comprehensive risk management processes, carry out regular security checks and report security incidents within 24 hours. Violations can be penalised with fines of up to 10 million euros or 2% of annual global turnover.
At the same time, the General Data Protection Regulation (GDPR) is making data protection standards a global model.
The USA, China, and Russia
USA: Technological Leadership and International Alliances
The USA sees digitalisation as the key to maintaining its global leadership role. With initiatives such as the CHIPS Act to promote semiconductor production and the strengthening of partnerships as part of the Indo-Pacific Economic Framework (IPEF), they are aiming to consolidate technological ecosystems and minimise strategic dependencies.
China: Technological Rise and Digital Influence
China is pursuing an offensive, expansionist digital strategy. With programmes such as ‘Made in China 2025’ and the expansion of the Digital Silk Road, it is securing access to critical technologies and global markets. At the same time, China relies on strict digital control and surveillance as instruments of domestic political stability.
Russia: Cyber Warfare and Technological Dependence
Russia uses cyber attacks and disinformation campaigns as a geopolitical tool. In the technological field, however, Russia is struggling with dependencies on foreign components and software. Its own initiatives such as the ‘Sovereign Internet’ law are intended to increase control over national data flows.
Conclusion
The world is increasingly moving towards technological spheres with different standards and ecosystems – a phenomenon known as ‘techno-nationalism’. Despite geopolitical tensions, there are also common interests, for example in the fight against cybercrime and in setting global standards for AI ethics.
Digitization has become a key area of geopolitical conflict. While the EU is working on its digital sovereignty and navigating between the interests of the USA, Russia and China, technological developments are shaping the balance of power worldwide. A balanced strategy that takes equal account of cooperation and protection is essential in order to operate successfully in this dynamic environment.
Pascal founded ViOffice together with Jan in the fall of 2020. He mainly takes care of marketing, finance and sales. After his degrees in political science, economics and applied statistics, he continues to work in scientific research. With ViOffice, he wants to provide access to secure software from Europe for everyone and especially support non-profit associations in their digitalization.