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The Diplomat
16-07-2025
- Business
- The Diplomat
The Digital Silk Road in the Gulf: Navigating Risks Amid China-US Rivalry
The Gulf region represents a convergence of regional instability and great power rivalry, with Chinese high-tech exports caught in the crossfire. China's Digital Silk Road has emerged as a strategic avenue to circumvent mounting U.S.-led barriers to its high-tech development, offering an alternative model for digital globalization that emphasizes Chinese standards, platforms, and infrastructure. The initiative aims to embed Chinese digital ecosystems – including advanced 5G, Internet of Things (IoT), artificial intelligence (AI), and sovereign cloud services – in core economic markets. One of the key testbeds for this strategy is the Gulf, where nations are implementing far-reaching digital transformation agendas under frameworks like Saudi Arabia's 'Vision 2030' and the United Arab Emirate's 'We the UAE 2031.' Leading Chinese firms – Huawei, ZTE, Alibaba Cloud, and CSCEC Middle East – have secured major roles in these transitions. Yet the Digital Silk Road's Gulf deployment is not unfolding in a stable context. The region is beset by escalating geopolitical tension and insecurity. Over the past two years, Houthi militias have launched missiles and drones targeting commercial traffic in the Red Sea – threatening maritime routes key to infrastructure logistics. Simultaneously, the recent Iranian-Israeli military strikes precipitated airspace restrictions in GCC states, affecting domestic connectivity and disrupting telecom deployments. These disruptions have coalesced with intensifying U.S. scrutiny of Chinese telecom giants, with Huawei and ZTE at the center of security debates. The Gulf thus represents a convergence of regional instability and great power rivalry, with Chinese digital exports caught in the crossfire. In this environment of volatility, traditional models centered on infrastructure exportation and rapid deployment are insufficient. Chinese technology firms must now navigate a complex landscape of security concerns, regulatory demands, and public trust issues. To remain viable and expand influence, they must evolve toward strategies of technology localization, embedding themselves within Gulf regulatory and operational ecosystems, and secure hedging, co-creating governance standards and resilience mechanisms. The effective combination of technology localization and secure hedging would become one of the most useful tools for Chinese exporters to solidify their role as stakeholders in global digital governance – thus ensuring sustained participation amid Sino-American tech competition. As the Gulf's digital frontier becomes increasingly contested, companies that internalize this dual paradigm can not only endure but also shape the emerging digital order, forging a strategic advantage in a globally contested arena. Digital Silk Road in the Middle East: Progress and Risks Over the past two years, Digital Silk Road initiatives in the Gulf have accelerated dramatically, embedding Chinese digital infrastructural frameworks in national development agendas. Huawei has spearheaded this expansion through multilateral agreements with regional carriers like Zain KSA and STC, advancing pillars of connectivity. At the 2025 Mobile World Congress in Barcelona, Huawei and Zain KSA announced a landmark 'Cloud‑First' agreement that integrates AI-driven enterprise services into Saudi Arabia's infrastructure plans, building on prior 5G collaborations and newly launched 5.5G testbeds designed for smart city applications. Meanwhile, Alibaba Cloud has established major data centers and hybrid clouds in Abu Dhabi and Dubai, aligning with national security priorities around data localization. ZTE, in partnership with Etisalat, has rolled out 5G test networks in the UAE, demonstrating the broad institutional reach of Chinese telecom vendors. CSCEC Middle East, the regional arm of China State Construction Engineering Corporation, has also ventured into digital infrastructure with ambitious smart urban developments and metro system integrations. Collectively, these companies are not merely delivering infrastructure – they are actively shaping Gulf digital ecosystems in ways that globalize Chinese technical norms and reinforce the country's position amid escalating U.S. export controls on semiconductors, AI chips, and telecom gear. Despite the strategic momentum, the Gulf's digital economy remains deeply vulnerable to layered shocks. Principally, there are four core risk vectors: geopolitical and security risks, regulatory and compliance risks, trust and perception risks, and operational and contractual risks. From a security perspective, the Red Sea has become a contested maritime corridor, with frequent Houthi rocket and drone attacks disrupting international shipping lanes essential for equipment transport and fiber-optic cable deployment. Simultaneously, the recent Iranian-Israeli military escalation led to intermittent GCC airspace closures, delaying site access and preventing on-site installations. Additionally, as U.S. secondary sanctions target Chinese telecom firms, Gulf governments must weigh both security considerations and diplomatic alignments when contracting with Chinese vendors. Politically, Gulf states are rapidly implementing strict data localization and AI governance regimes. The Saudi National Data Management Office (NDMO) mandates local storage for critical government and public-sector data. The UAE's federal Data Protection Law and parallel 'We the UAE 2031' AI framework require robust algorithmic transparency and data oversight. Chinese vendors, long used to turnkey export models with centralized data flows, now find themselves needing to restructure contractual arrangements. These often include local content requirements, joint venture obligations, and IP licensing protocols that reflect sovereign security interests. Then there are the added trust and perception risks. Huawei remains emblematic of Chinese tech under Western scrutiny. U.S. agencies frequently label Huawei as a national security threat, advising allied states to restrict its involvement in telecom infrastructure. To counterbalance this, Gulf nations have actively diversified their vendor ecosystems; the UAE's Microsoft-G42 cloud collaboration is a salient example. Chinese companies must now overcome preconceptions through proactive engagement, transparency, and demonstrated compliance with international norms. Finally, there are the impacts all these factors have on operations on the ground. Geopolitical events frequently trigger force-majeure scenarios that disrupt timelines for smart-city builds and cloud rollouts. Supply chain dislocations – from shipping lane rerouting to restricted financing – expose project budgets and contractual obligations to delay-related penalties. Moreover, currency fluctuations and embargo risks make it difficult for Chinese firms to forecast and manage financial liabilities. Together, these layered risks define the contours of the Gulf's Digital Frontier – a market simultaneously high in digital ambition and elevated by strategic volatility. Chinese companies must grapple with more than technical implementation; they must engage in diplomatic, regulatory, and perceptual management if they are to sustain long-term roles in this contested region. Chinese Firms Responding to Gulf Tech Risks Within the constraints of the Gulf's Digital Frontier, two architectural approaches emerge: embedding into local systems via operational localization and collaborative governance, anchored by transparent compliance protocols. Chinese firms – like CSCEC Middle East and Huawei – are already deploying these strategies. CSCEC Middle East has taken an ambitious stance with projects such as Dubai Digital Park, a smart-city endeavor integrating intelligent building systems, public infrastructure monitoring, and fiber-backed ICT networks. While the technical specifications are standard for advanced urban development, the project's strength lies in its embeddedness – targeting placement of 75,000 Emiratis into private sector roles over five years, ensuring local alignment and acceptance. Moreover, the initiative was the first to formally comply with Dubai Municipality's Building Information Modeling (BIM) regulations, integrating local digital governance norms from the outset. Crucially, CSCEC has implemented continuous compliance checks with data-localization laws – holding real-time data within UAE servers, processing analytics onsite, and allowing data access only through approved national gateways. This tight regulatory alignment has helped insulate the company from maritime delivery disruptions linked to Red Sea volatility or airport entry issues following airspace closures, as local teams have continued smoother operations irrespective of external constraints. In Saudi Arabia, Huawei's footprint illustrates a multilayered approach to mitigating strategic risk. The 2025 'Cloud-First' agreement with Zain KSA aims not merely at digital services but hinges on constructing sovereign cloud zones in Riyadh. These facilities will house sensitive government and enterprise data on Saudi soil with local encryption, which aligns directly with NDMO mandates. Huawei also co-created Saudi AI labs embedded in King Abdullah Economic City, staffed predominantly by Saudis and overseen by a joint Saudi-Chinese oversight committee, reinforcing algorithmic transparency and data ethics standards. The company's public-sector AI deployment – such as its pilgrimage-monitoring system for the 2025 Hajj – has been transparently subject to independent audits and deployed with cyber-resilience protocols configured for mass gatherings under high-security conditions. Notably, this project has continued despite regional airspace restrictions, as cloud and telemetry infrastructure was pre-verified for alternate sourcing routes and modular on-premises deployment. Beyond these measures, Huawei has coordinated with STC on a data-center cluster architecture designed to reroute workloads across multiple regional locations – thereby maintaining service continuity even if one site is compromised. In essence, Huawei is demonstrating that Chinese technology, when integrated intelligently and transparently within sovereign frameworks, can stand up to both regional and geopolitical disruption. These dual-lined strategies – operational localization and compliance-anchored deployment – create a firewall between Chinese tech exports and the unpredictable regional dynamics that define the Gulf's digital landscape. Why Both Technology Localization and Secure Hedging Are Necessary To thrive, Chinese companies operating under the Digital Silk Road must deploy both mechanisms: technology localization, which binds operations firmly to host-state ecosystems, and secure hedging, which builds joint resilience and governance structures. Technology localization is about more than just physical presence – it demands structural integration. This includes setting up sovereign cloud zones and telecom networks under local jurisdiction, training and employing local staff, and building compliance processes that are bound by host-country norms. In the case of Huawei and Zain KSA, Chinese-built data centers are not only situated within Saudi territory but managed under strict NDMO guidelines and staffed heavily by Saudis. Similarly, CSCEC's Dubai smart-city deployment aligns with local digital project documentation and data processing regulations, embedding compliance within daily operations. Localization ensures that Chinese deployments are immune to external shocks, whether from shipping delays, airspace restrictions, or geopolitical volatility. While localization anchors Chinese firms operationally in the Gulf, it does not fully address the political sensitivities and security concerns they face. Secure hedging is the necessary second layer – a strategy that strengthens trust, mitigates geopolitical risk, and embeds Chinese technology into the host countries' regulatory and governance systems. In the Gulf's strategic environment, concerns over Chinese tech are driven not only by technical issues but also by broader political optics. Host governments, while eager to modernize, are wary of over-reliance on Chinese vendors amid ongoing China-U.S. tensions. Secure hedging responds to this by promoting joint regulatory frameworks, shared oversight, and transparent technical operations that reinforce mutual accountability. This strategy involves co-developing standards and audit mechanisms, especially for sensitive sectors like 5G and AI. By aligning with local data protection laws and allowing independent verification, Chinese firms can demonstrate compliance and reduce suspicion. Secure hedging also requires resilient technical architecture – such as mirrored data centers and modular cloud systems – that ensures continuity during crises like airspace closures or shipping disruptions. Equally important, secure hedging carries diplomatic value. Through participation in regional governance platforms and multilateral dialogues, Chinese companies project a cooperative posture and help normalize their role in critical infrastructure. In sum, secure hedging transforms Chinese tech exports from contested assets into integrated, resilient systems. It enables firms to navigate both physical disruptions and political pressures – securing their place in the Gulf's evolving digital future. Enduring Engagement and Strategic Leverage China's Digital Silk Road in the Gulf is unfolding in an environment deeply shaped by the complex interplay of regional instability and Sino–American tech rivalry. What began as infrastructure exports has transitioned into something more enduring – and strategically significant. Firms such as Huawei and CSCEC Middle East are not simply delivering projects; they are embedding themselves in Gulf states' digital architectures, aligning to sovereign standards, and shaping shared governance frameworks. Contrary to expectations from some analysts that geopolitical tensions might discourage Chinese participation, current evidence shows an intensification of engagement. Localization and co-governance have become core pillars, ensuring that Gulf states see value not only in the technology itself, but in inclusive, transparent deployment – insulated from disruptions triggered by shipping risk, airspace shutdowns, or escalations in U.S. security discourse. This trajectory holds meaning beyond immediate infrastructure returns. As the China-U.S. tech competition evolves into a game of systemic influence, Gulf digital systems become strategic assets. Chinese companies' deep integration into the region positions China with structural leverage – access not only to projects, but to the digital backbone of vital economies. In effect, the Digital Silk Road is morphing into a geopolitical instrument, offering China a long-term 'card' in the global balance of power. Moving forward, the countries of the Gulf appear determined to deepen cooperation – with Chinese firms embedding into governance frameworks and shared standards. For Beijing, the dividends are precision: not only market share, but geopolitical endurance and influence. In emerging multipolar technology landscapes, the Digital Silk Road's success – in the Gulf and beyond – will depend not just on exported equipment, but on sustained co-creation, anchored in sovereignty and resilience.
Reuters
16-07-2025
- Business
- Reuters
US aims to ban Chinese technology in undersea telecommunications cables
WASHINGTON, July 16 (Reuters) - The Federal Communications Commission said on Wednesday it plans to adopt rules to bar companies from connecting undersea submarine communication cables to the United States that include Chinese technology or equipment. "We have seen submarine cable infrastructure threatened in recent years by foreign adversaries, like China," FCC Chair Brendan Carr said in a statement. "We are therefore taking action here to guard our submarine cables against foreign adversary ownership, and access as well as cyber and physical threats." The United States has for years expressed concerns about China's role in handling network traffic and the potential for espionage. The U.S. has broad data security concerns about the network of more than 400 subsea cables that handle 99% of international internet traffic. Since 2020, U.S. regulators have been instrumental in the cancellation of four cables whose backers had wanted to link the United States with Hong Kong. The FCC last year said it was considering new rules governing undersea internet cables in the face of growing security concerns, as part of a review of regulations on the links that handle nearly all the world's online traffic. The FCC said it was considering barring the use of equipment or services in those undersea cable facilities from companies on an FCC list of companies deemed to pose threats to U.S, national security, including Huawei, ZTE ( opens new tab, ( opens new tab China Telecom and China Mobile ( opens new tab. Carr said the FCC is taking action to "guard our submarine cables against foreign adversary ownership, and access as well as cyber and physical threats." The FCC will also seek comment on additional measures to protect submarine cable security against foreign adversary equipment. The cutting of two fiber-optic undersea telecommunication cables in the Baltic Sea prompted investigations of possible sabotage. In 2023 Taiwan accused two Chinese vessels of cutting the only two cables that support internet access on the Matsu Islands and Houthi attacks in the Red Sea may have been responsible for the cutting of three cables providing internet service to Europe and Asia.
GSM Arena
14-07-2025
- GSM Arena
Report: Chinese Android makers are testing under-display selfie cameras with 3D facial recognition
3D facial recognition hardware is a luxury in today's smartphone market, with Apple being the only major player to offer Face ID on its iPhones persistently. According to a new report, several Chinese smartphone makers are internally testing devices with under-screen cameras and 3D face recognition. The report comes from tipster Digital Chat Station and suggests that we may soon see the first crop of devices with the 'invisible' selfie cameras for biometric authentication. No specific maker or model was mentioned for now. While iPhones have had 3D face recognition for a while, it is still a rarity on Android devices. Honor is one of the only makers to offer the feature, with the Magic7 Pro being the most recent example. We've also seen several Android devices with under-display (UD) selfie cameras, mainly from the ZTE nubia lineup - the Z70S Ultra being one recent example. What we haven't seen yet is a device that has both 3D face scanning and a UD camera, so it would be interesting to see how this tech develops and which brand will release the first device combining both features. Source (in Chinese)
Korea Herald
11-07-2025
- Business
- Korea Herald
ZTE CDO Cui Li Highlights Efficient and Green AI as a Driver of SDGs Progress at AI for Good Global Summit
GENEVA, July 11, 2025 /PRNewswire/ -- ZTE Corporation ( / a global leading provider of integrated information and communication technology solutions, announced that Cui Li, the company's Chief Development Officer (CDO), was invited to attend the workshop themed "Navigating the Intersect of AI, Environment and Energy for a Sustainable Future" at the AI for Good Global Summit 2025 held in Geneva. During the session, she delivered a speech titled "Accelerating Progress Towards SDGs with AI-powered New Paradigm," where she shared ZTE's innovative efforts to drive efficient and green AI, and to deepen the integration of AI with ICT technologies and products, with the goal of accelerating AI accessibility and low-carbon transformation of society. Cui Li observed that the latest AI surge, driven by large language models, is sweeping the world at incredible speed. This rapid advance is accompanied by soaring computing demands and surging energy consumption. Achieving sustainable AI has therefore become an industry-wide imperative, and the key lies in defining a clear and efficient pathway. Framing the issue from two perspectives—"Energy for AI" and "AI for Energy"—she outlined how companies can scale AI in a greener, more efficient manner and, in turn, harness AI to drive an energy transition that cuts costs, improves efficiency, and supports a low-carbon future. In terms of "Energy for AI," Cui Li emphasized that the industry faces an "Inverted Triangle Dilemma" and efficiency holds the key to solving the dilemma. In response, ZTE is tackling the issue on three levels—developing efficient infrastructure, enabling efficient intelligence enhancement, and accelerating impact through efficiency—collectively driving the efficient and green development of AI. With respect to "AI for Energy," she highlighted that under the core strategy of "AI for All," ZTE has deeply integrated AI with its ICT technologies and products to build full-stack intelligent solutions. The company is now deploying AI capabilities across industrial, household and consumer scenarios, enabling cost-efficiency, operational gains and a lower-carbon trajectory for the wider economy.
Cision Canada
11-07-2025
- Business
- Cision Canada
ZTE CDO Cui Li Highlights Efficient and Green AI as a Driver of SDGs Progress at AI for Good Global Summit
GENEVA, July 11, 2025 /CNW/ -- ZTE Corporation ( / a global leading provider of integrated information and communication technology solutions, announced that Cui Li, the company's Chief Development Officer (CDO), was invited to attend the workshop themed "Navigating the Intersect of AI, Environment and Energy for a Sustainable Future" at the AI for Good Global Summit 2025 held in Geneva. During the session, she delivered a speech titled "Accelerating Progress Towards SDGs with AI-powered New Paradigm," where she shared ZTE's innovative efforts to drive efficient and green AI, and to deepen the integration of AI with ICT technologies and products, with the goal of accelerating AI accessibility and low-carbon transformation of society. Cui Li observed that the latest AI surge, driven by large language models, is sweeping the world at incredible speed. This rapid advance is accompanied by soaring computing demands and surging energy consumption. Achieving sustainable AI has therefore become an industry-wide imperative, and the key lies in defining a clear and efficient pathway. Framing the issue from two perspectives—"Energy for AI" and "AI for Energy"—she outlined how companies can scale AI in a greener, more efficient manner and, in turn, harness AI to drive an energy transition that cuts costs, improves efficiency, and supports a low-carbon future. In terms of "Energy for AI," Cui Li emphasized that the industry faces an "Inverted Triangle Dilemma" and efficiency holds the key to solving the dilemma. In response, ZTE is tackling the issue on three levels—developing efficient infrastructure, enabling efficient intelligence enhancement, and accelerating impact through efficiency—collectively driving the efficient and green development of AI. With respect to "AI for Energy," she highlighted that under the core strategy of "AI for All," ZTE has deeply integrated AI with its ICT technologies and products to build full-stack intelligent solutions. The company is now deploying AI capabilities across industrial, household and consumer scenarios, enabling cost-efficiency, operational gains and a lower-carbon trajectory for the wider economy.
