Digital expansionism : exploring the U.S.-China technology dynamic through cybersecurity policy and international marketing strategies in the Cloud Computing Sector

Abstract

The U.S. and China remain largely separated from one another in terms of technological market access, with both sides implementing policy regimes serving as official or unofficial barriers to international trade, especially evident in data-sensitive industries, such as cloud computing. The result is a very low market share for American cloud computing providers in China, and vice-versa. This paper explores the U.S.-China dynamic insofar as government policy and action are concerned, the U.S. and China markets, and private enterprise's response and strategy in the cloud computing industry, which is notable not only given its value, $278.3 billion worldwide by 2021, but also its central position in the flow of global data.' The paper arrives at a number of conclusions. Firstly, given China's techno-nationalist policy regime, U.S. cloud computing firms, and by extension, all U.S. technology companies, will face increasingly limited market share and opportunity in China. Conversely, Chinese cloud computing providers, and by extension Chinese technology products, in general, may be able to successfully garner market share in the U.S. by offering innovative products with little to no substitutes, for which Americans will potentially waive their data privacy concerns in order to access (which may lead to unintended consequences). Lastly, the U.S. and China should work together to form, articulate and implement cybersecurity and data norms, enhancing international cooperation on a government and private enterprise level, effectively removing international trade barriers and promoting and enhancing market access. Cooperation, however, remains a challenge, given the differing policy objectives of the U.S. and China.