Central idea
The U.S. changed its digital trade stance, wanting more control over Big Tech and AI. China’s rise influenced this, creating a possible digital Cold War. Developing nations should make strong digital rules but avoid depending too much on the U.S. or China.
Key Highlights:
- The U.S. withdrawal from key digital trade positions at the WTO signifies a shift in global digital dynamics.
- The move is prompted by the recognition of the need for domestic policy space to regulate Big Tech and AI, impacting data flows, source code, and computing facilities.
- The China factor emerges as a significant reason behind the U.S. decision, as a digital Cold War scenario looms between the U.S. and China.
Challenges:
- The potential split of the global digital space into U.S. and China-led blocs poses challenges for countries caught in the crossfire.
- Developing nations must navigate the risk of digital dependencies on either the U.S. or China, avoiding entanglement in a new form of digital Cold War.
Key Phrases:
- Digital colonisation and extractive nature.
- Digital trade proposals as an agenda at plurilateral trade negotiations and the WTO.
- The flat world concept and its evolution into a split digital world.
Analysis:
- The withdrawal is seen as a shift from the flat world narrative, with the U.S. adapting to a more complex digital landscape influenced by the rise of China.
- The U.S. emphasis on preserving policy space for domestic regulation highlights the recognition of the importance of digital control in the era of Big Tech and AI.
Key Data:
- The U.S. withdrawal in late October from digital trade positions at the WTO.
- China’s active participation in global digital trade negotiations and its potential to outsmart the U.S. digitally
Key Terms to enrich your upsc mains answer:
- Digital colonisation.
- ICT4D (Information and Communication Technologies for Development).
- Digital Cold War.
- Digital industrial policies.
- Global-scale interoperability.
Way Forward:
- Developing countries should leverage the global consensus on the need for strong digital regulations to shape new paradigms for national digital regulation.
- Resistance against falling into a digital Cold War trap, emphasizing the creation of open global standards and digital public infrastructures for genuine global interoperability.
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