The internet of things: China's rise and Australia's choices
In: http://hdl.handle.net/11540/14523
The world is being transformed by expansion of the Internet of Things (IoT). The security challenges that go with this expansion require confronting the transnational character of these evolving technological ecosystems. Distrust of China and its ever-more pervasive presence in the transnational IoT is driving US efforts to diversify digital technology supply chains away from China, and to limit China's presence in global digital connections. But these efforts are unlikely to shift the established trend among East and Southeast Asian countries towards deepening integration with China. The cyber-physical nature of IoT ecosystems reinforces China's advantages as a global manufacturing hub. And the complex features of these supply chains generate inertia against relocating them to politically trusted jurisdictions ("re-shoring" or "friend-shoring"). This is illustrated through case studies of the automotive sector's transition towards electric and intelligent connected vehicles, and the expansion of "smart city" ecosystems. Exposure through these ecosystems to Chinese actors and therefore Chinese state power will increasingly become the price of access to the wider regional economy, even as US pressure to align against China grows. As powerful governments set the "terms of engagement" for participating in transnational technological ecosystems, "technology takers" will be disadvantaged. In response, Australia will need to build up its own technological capacities and find innovative ways to manage, rather than avoid, the risks implied by rising digital connections with China.