Australia is set to link its Indian Ocean territory of Christmas Island to the mainland through a subsea cable project backed by Alphabet’s Google. The Bosun cable will connect Darwin to Christmas Island, significantly enhancing digital resilience and creating additional pathways to Asia. Christmas Island, strategically located 350 km from Jakarta, is home to a small population of 1,250 but plays a vital role in regional defence and communications, aligning with ongoing US-Australia military upgrades in northern Australia.
The project, supported by Australian firms NextDC, Vocus, and Subco, forms part of a larger strategy to diversify subsea cable networks. These connections will complement Australia’s links across the Pacific and Indian Oceans, integrating into global networks connecting the United States, Asia, and the Pacific Islands. The cables also support Australia’s defence strategy, including its surveillance operations as China‘s submarine activity increases in the Indian Ocean.
In addition to its strategic importance, the cable will provide the residents of Christmas Island with faster and more reliable internet services, significantly improving local connectivity. This development highlights Australia’s commitment to secure, resilient digital infrastructure while strengthening ties with its remote territories and global partners.
Chinese big tech companies have emerged as some of the most influential players in the global technology landscape, driving innovation and shaping industries across the board. These companies are deeply entrenched in everyday life in China, offering a wide range of services and products that span e-commerce, social media, gaming, cloud computing, ΑΙ, and telecommunications. Their influence is not confined to China, they also play a significant role in global markets, often competing directly with US tech giants.
The rivalry between China and the US has become one of the defining geopolitical struggles of the 21st century. This competition oscillates between cooperation, fierce competition, and confrontation, influenced by regulatory policies, national security concerns, and shifting political priorities. The geopolitical pendulum of China-US tech firms, totally independent from the US election outcome, reflects the broader tensions between the two powers, with profound implications for global tech industries, innovation, and market dynamics.
The Golden Shield Project
In 2000, under Chairman Jiang Zemin’s leadership, China launched the Golden Shield Project to control media and information flow within the country. The initiative aimed to safeguard national security and restrict the influence of Western propaganda. As part of the Golden Shield, many American tech giants such as Google, Facebook, and Netflix were blocked by the Great Firewall for not complying with China’s data regulations, while companies like Microsoft and LinkedIn were allowed to operate.
At the same time, China’s internet user base grew dramatically, reaching 800 million netizens by 2018, with 98% using mobile devices. This rapid expansion provided a fertile ground for Chinese tech firms, which thrived without significant competition from foreign players. Among the earliest beneficiaries of this system were the BATX companies, which capitalised on China’s evolving internet landscape and rapidly established a dominant presence in the market.
The powerhouses of Chinese tech
The major Chinese tech companies, often referred to as the Big Tech of China, include Alibaba Group, Tencent, Baidu, ByteDance, Huawei, Xiaomi, JD.com, Meituan, Pinduoduo, and Didi Chuxing.
Alibaba Group is a global e-commerce and technology conglomerate, operating platforms such as Taobao and Tmall for e-commerce, AliExpress for international retail, and Alipay for digital payments. The company also has significant investments in cloud computing with Alibaba Cloud and logistics.
Tencent, a massive tech conglomerate, is known for its social media and entertainment services. It owns WeChat, a widely used messaging app that offers payment services, social media features, and more. Tencent also has investments in gaming, owning major stakes in Riot Games, Epic Games, and Activision Blizzard, as well as interests in financial services and cloud computing.
Baidu, often called China’s Google, is a leading search engine provider. In addition to its search services, Baidu has a strong presence in AI development, autonomous driving, and cloud computing, particularly focusing on natural language processing and autonomous vehicles.
ByteDance, the company behind TikTok, has made a name for itself in short-form video content and AI-driven platforms. It also operates Douyin, the Chinese version of TikTok, along with Toutiao, a popular news aggregation platform. ByteDance has expanded into gaming, e-commerce, and other AI technologies.
Huawei is a global leader in telecommunications equipment and consumer electronics, particularly smartphones and 5G infrastructure. The company is deeply involved in cloud computing and AI, despite facing significant geopolitical challenges.
Xiaomi is a leading smartphone manufacturer that also produces smart home devices, wearables, and a wide range of consumer electronics. The company is growing rapidly in the Internet of Things (IoT) space and AI-driven products.
JD.com, one of China’s largest e-commerce platforms, operates similarly to Alibaba, focusing on direct sales, logistics, and tech solutions. JD.com has also made significant strides in robotics, AI, and logistics technology.
Meituan is best known for its food delivery and local services platform, offering everything from restaurant reservations to hotel bookings. The company also operates in sectors like bike-sharing, travel, and ride-hailing.
Pinduoduo has rapidly grown in e-commerce by focusing on group buying and social commerce, particularly targeting lower-tier cities and rural markets in China. The platform offers discounted products to users who buy in groups.
Didi Chuxing is China’s dominant ride-hailing service, offering various transportation services such as ride-hailing, car rentals, and autonomous driving technology.
But what are the BATX companies we mentioned earlier?
BAXT
The term BATX refers to a group of the four dominant Chinese tech companies: Baidu, Alibaba, Tencent, and Xiaomi. These companies are central to China’s technology landscape and are often compared to the US “FAANG” group (Facebook, Apple, Amazon, Netflix, Google) because of their major influence across a range of industries, including e-commerce, search engines, social media, gaming, ΑΙ and telecommunications. Together, BATX companies are key players in shaping China’s tech ecosystem and have a significant impact on global markets.
China’s strategy for tech growth
China’s technology development strategy has proven effective in propelling the country to the forefront of several high-tech industries. This ambitious approach, which involves broad investments across both large state-owned enterprises and smaller private startups, has fostered significant innovation and created a competitive business environment. As a result, it has the potential to serve as a model for other countries looking to stimulate tech growth.
A key driver of China’s success is its diverse investment strategy, supported by government-led initiatives like the “Made in China 2025” and the “Thousand Talents Plan“. These programs offer financial backing and attract top talent from around the globe. This inclusive approach has helped China rapidly emerge as a global leader in fields like AI, robotics, and semiconductors. However, critics argue that the strategy may be overly aggressive, potentially stifling competition and innovation.
Some have raised concerns that China’s government support unfairly favours domestic companies, providing subsidies and other advantages that foreign competitors do not receive. Yet, this type of protectionist approach is not unique to China; other countries have implemented similar strategies to foster the growth of their own industries.
Another critique is that China’s broad investment model may encourage risky ventures and the subsidising of failures, potentially leading to a market that is oversaturated with unprofitable businesses. While this criticism holds merit in some cases, the overall success of China’s strategy in cultivating a dynamic and competitive tech landscape remains evident.
Looking ahead, China’s technology development strategy is likely to continue evolving. As the country strengthens its position on the global stage, it may become more selective in its investments, focusing on firms with the potential for global leadership.
In any case, China’s strategy has shown it can drive innovation and foster growth. Other nations hoping to advance their technological sectors should take note of this model and consider implementing similar policies to enhance their own competitive and innovative business environments.
But under what regulatory framework does Chinese tech policy ultimately operate? How does it affect the whole project? Are there some negative effects of the tight state grip?
China’s regulatory pyramid: Balancing control and consequences
China’s regulatory approach to its booming tech sector is defined by a precarious balance of authority, enforcement, and market response. Angela Zhang, author of High Wire: How China Regulates Big Tech and Governs Its Economy, proposes a “dynamic pyramid model” to explain the system’s intricate dynamics. This model highlights three key features: hierarchy, volatility, and fragility.
The top-down structure of China’s regulatory system is a hallmark of its hierarchy. Regulatory agencies act based on directives from centralised leadership, creating a paradox. In the absence of clear signals, agencies exhibit inaction, allowing industries to flourish unchecked. Conversely, when leadership calls for stricter oversight, regulators often overreach. A prime example of this is the drastic shift in 2020 when China moved from years of leniency toward its tech giants to implementing sweeping crackdowns on firms like Alibaba and Tencent.
This erratic enforcement underscores the volatility of the system. Chinese tech regulation is characterised by cycles of lax oversight followed by abrupt crackdowns, driven by shifts in political priorities. The 2020 – 2022 crackdown, which involved antitrust investigations and record-breaking fines, sent shockwaves through markets, wiping out billions in market value. While the government eased its stance in 2022, the uncertainty created by such pendulum swings has left investors wary, with many viewing the Chinese market as unpredictable and risky.
Despite its intentions to address pressing issues like antitrust violations and data security, China’s heavy-handed regulatory approach often results in fragility. Rapid interventions can undermine confidence, stifle innovation, and damage the very sectors the government seeks to strengthen. Years of lax oversight exacerbate challenges, leaving regulators with steep issues to address and markets vulnerable to overcorrection.
This model offers a lens into the broader governance dynamics in China. The system’s centralised control and reactive policies aim to maintain stability but often generate unintended economic consequences. As Chinese tech firms look to expand overseas amid domestic challenges, the long-term impact of these regulatory cycles remains uncertain, potentially influencing China’s ability to compete on the global stage.
The battle for tech supremacy between the USA and China
The incoming US President Donald Trump is expected to adopt a more aggressive, unilateral approach to counter China’s technological growth, drawing on his history of quick, broad measures such as tariffs. Under his leadership, the USA is likely to expand export controls and impose tougher sanctions on Chinese tech firms. Trump’s advisors predict a significant push to add more companies to the US Entity List, which restricts US firms from selling to blacklisted companies. His administration might focus on using tariffs (potentially up to 60% on Chinese imports) and export controls to pressure China, even if it strains relations with international allies.
The escalating tensions have been further complicated by China’s retaliatory actions. In response to US export controls, China has targeted American companies like Micron Technology and imposed its own restrictions on essential materials for chipmaking and electric vehicle production. These moves highlight the interconnectedness of both economies, with the US still reliant on China for critical resources such as rare earth elements, which are vital for both technology and defence.
This intensifying technological conflict reflects broader concerns over data security, military dominance, and leadership in AI and semiconductors. As both nations aim to protect their strategic interests, the tech war is set to continue evolving, with major consequences for global supply chains, innovation, and the international balance of power in technology.
The White House has engaged leading United States telecommunications executives in a high-level meeting to address a significant cyber-espionage campaign allegedly linked to China. National Security Adviser Jake Sullivan and Deputy Adviser Anne Neuberger hosted the meeting, seeking industry insights and strengthening government-private sector partnerships to counteract future cyber threats.
Earlier this month, US authorities disclosed that hackers, purportedly linked to China, accessed surveillance data meant for law enforcement by breaching multiple telecom companies. Senator Mark Warner described the breach as the ‘worst telecom hack in our nation’s history.’
Though the identities of the companies and executives involved remain undisclosed, the meeting underscores the urgency of cybersecurity improvements amid escalating threats from state-sponsored actors. While China has categorically denied involvement, the incident amplifies concerns over Beijing’s alleged cyber activities targeting critical US infrastructure.
The discussions aim to establish better safeguards against sophisticated attacks, reinforcing collaboration between federal agencies and the telecom sector to bolster national cyber resilience.
Huawei has launched its Mate 70 smartphone series, signalling a major step in its comeback to premium devices while showcasing HarmonyOS NEXT, its Android-free operating system. Priced from 5,499 yuan ($758), the Mate 70 challenges Apple’s iPhone 16 in China, boasting features like satellite paging, an advanced processor, and a 40% performance boost over previous models.
HarmonyOS NEXT represents Huawei’s bid for software independence after US export restrictions cut off access to Google services. The company announced that all new devices starting in 2025 will run the new system, while current Mate 70 users can choose between HarmonyOS 4.3 (Android-compatible) and the new HarmonyOS NEXT 5.0. Despite this shift, Huawei has retained Android compatibility as a backup while growing its app ecosystem, which already includes 15,000 applications.
The Mate 70 also highlights China’s advancing chipmaking capabilities, reportedly featuring SMIC-produced Kirin 9100 processors in higher-end models. This achievement underscores Huawei’s resilience despite ongoing US export controls and the addition of Chinese firms to trade blacklists. Huawei’s rebound is reflected in its rising market share, now ranked as China’s second-largest smartphone vendor with over 10 million units shipped in recent quarters.
The launch of the Mate 70 marks Huawei’s increasing competition with Apple and other global players in the world’s largest smartphone market, fueled by patriotic support for its technological breakthroughs.
China‘s low Earth orbit satellite firm, SpaceSail, has signed an agreement with Brazilian state telecom Telebras to provide satellite broadband services. The deal was announced during President Xi Jinping’s state visit to Brazil, following the G20 summit in Rio de Janeiro.
SpaceSail’s entry into Brazil marks its first international venture, challenging Elon Musk’s Starlink, which has over 6,000 satellites globally and serves various sectors in Brazil. The Thousand Sails Constellation will power SpaceSail’s services, offering connectivity in remote areas.
Brazil’s government aims to diversify satellite service providers amid recent tensions involving Starlink and Musk’s social media platform X. China’s growing satellite presence includes 1,059 satellites, with plans for massive constellations to rival Starlink’s dominance.
Tuvalu, a Pacific Island nation, is facing existential threats from climate change, notably rising sea levels predicted to submerge much of its land and infrastructure by 2050. In response, the government is creating a digital ‘twin’ of the country, as part of the Future Now project introduced by Foreign Minister Simon Kofe at COP27. This initiative aims to digitally safeguard Tuvalu’s land, culture, and legal rights as the physical reality of the nation becomes increasingly threatened by frequent flooding and environmental changes.
The Digital Nation project addresses critical sovereignty issues by adapting international law standards, which currently require a defined territory and permanent population. As Tuvalu’s territory is at risk, the project includes innovative measures like digital passports on blockchain to maintain governmental operations. While the project has faced scepticism for its resource demands and perceived impracticality, it promises significant practical benefits, such as improving solar and water management capacities, by transforming cultural preservation into a tangible digital endeavour.
This digital approach has sparked debate among leaders and citizens, with former Prime Minister Enele Sopoaga and others urging physical resilience over digital displacement. However, the project continues to progress with advanced technologies like Lidar for mapping and enhanced telecommunications to support connectivity, showing significant international collaboration.
Tuvalu’s strategy may influence global trends, as other nations, notably in advanced economies, are also exploring digital spatial management for urban and resource planning. This bold initiative not only addresses immediate threats but also potentially redefines national sovereignty in the face of climate change, offering a model for similarly at-risk countries.
As the US prepares for Donald Trump’s second term, China is significantly increasing its semiconductor imports from the US, anticipating potential sanctions. In October, China imported $1.11 billion worth of microchips, a 60% rise from the previous year, and has already imported $9.61 billion in the first ten months of 2024, marking a 42.5% year-on-year increase. This surge reflects China’s growing demand for US semiconductors, particularly CPU-based processors and chips for storage and signal amplification, which align with its AI ambitions.
Despite these imports, China faces hurdles in advancing its chip technology. US sanctions have crippled Huawei’s ability to develop competitive AI chips, with the company’s upcoming processors lagging years behind NVIDIA’s offerings. This setback is largely due to restrictions on access to advanced lithography equipment, such as ASML’s EUV tools, essential for creating cutting-edge chips.
Meanwhile, China has been ramping up its chip manufacturing efforts, investing $25 billion in equipment in the first half of 2024, surpassing spending by Korea, Taiwan, and the US. However, as one-third of global semiconductor demand, China’s position remains critical for the industry. The impact of Trump’s potential tech restrictions, whether broad or selective, will likely influence the global semiconductor market, requiring careful balancing of US production and Chinese demand.
Meta is enhancing its Messenger app with a range of new features, including HD video calls, voice isolation, and AI-powered backgrounds. HD calls are now the default for Wi-Fi users and can also be enabled for cellular calls. Voice isolation reduces background noise during calls, improving clarity.
The app also introduces video and audio voice messages, allowing users to leave recordings when their contacts are unavailable. iOS users gain the ability to send messages and make calls through Siri, offering hands-free convenience.
Another highlight is the AI-generated backgrounds for video calls. Users can select this feature via the “effects” icon during calls, adding a creative, customisable touch to their conversations. These updates follow recent improvements, such as end-to-end encryption by default and the addition of a Meta AI chatbot in Messenger. Meta continues to evolve Messenger into a versatile communication platform, blending functionality with cutting-edge technology to enhance the user experience.
Ghana and Gambia are working together to implement the ECOWAS Free Roaming Initiative to reduce telecommunications costs for citizens travelling between the two countries and foster stronger economic and social ties. Spearheaded by Ghana’s National Communications Authority (NCA), Ministry of Communications and Digitalisation, and mobile network operators (MNOs), the initiative aligns with ECOWAS’s broader regional integration and economic self-sufficiency goals.
A memorandum of understanding (MoU) will emerge from ongoing negotiations, enabling technical and regulatory discussions. Full implementation of the roaming regulations is planned for the first half of 2025, following the success of Ghana’s similar agreements with Côte d’Ivoire (February 2024), Benin (July 2024), and a trilateral deal with Togo and Benin (October 2024), which have already reduced costs and enhanced connectivity across the region.
Why does it matter?
That partnership highlights ECOWAS’s commitment to creating a seamless communication network and unified trade zone across West Africa. By expanding affordable cross-border telecommunications, such initiatives aim to build a robust digital infrastructure that fosters economic growth and regional cohesion. As Ghana and Gambia take steps to implement this initiative, they contribute to the broader vision of improving connectivity and integration across the ECOWAS region.
South Africa is advancing its National Communication Satellite Strategy (SatCom) to bridge the digital divide, achieve digital inclusion, and position itself as a regional leader in satellite technology. The ambitious initiative aims to improve connectivity in underserved areas, expand access to education, healthcare, and financial tools, and create economic opportunities for marginalised communities.
The project seeks to establish sovereign communication capabilities while enhancing national security by reducing reliance on foreign service providers and curbing capital outflows. With an estimated investment of ZAR 5.2 billion, SatCom is expected to become financially viable within six to seven years, significantly reducing the ZAR 100 billion South Africa spends annually on foreign communication services. The strategy aligns with national priorities to lower connectivity costs, advance digital transformation, and ensure reliable emergency communications.
Despite its transformative potential, SatCom faces challenges, including securing orbital slots and spectrum rights, addressing technical skill gaps, and finalising funding strategies from the public and private sectors. SANSA and Sentech will handle satellite acquisition and localisation, while ICASA and SITA will oversee operations and last-mile infrastructure.
Why does it matter?
With endorsements from key stakeholders, the strategy will soon proceed to public consultations and Cabinet ratification. Once implemented, it promises to revolutionise connectivity, create jobs, foster economic growth, and establish South Africa as a leader in exporting satellite services across Africa.
