Avoiding China's 'Data Trap'

The Convergence of Technology and Global Politics

The TechCrunch Global Affairs Project investigates the increasingly close connection between the technology industry and international political dynamics. Recent, high-profile data breaches – including those affecting the Office of Personnel Management, airline passenger records, and hotel guest information – have highlighted the vulnerabilities of both public and private systems to espionage and cyberattacks.

Strategic Data in the Modern Era

Less apparent, however, is the potential for adversaries to target data that doesn’t immediately appear relevant to national security or traditional espionage. Currently, information regarding public opinion, similar to that utilized by advertisers for consumer analysis, possesses strategic importance comparable to data concerning conventional military objectives.

As the definition of strategically valuable information becomes increasingly ambiguous, identifying and safeguarding such data will become a more complex and crucial national security undertaking.

China’s Pursuit of Strategic Data

This is especially pertinent when considering nation-state actors, such as China, which actively seeks access to strategic data and aims to leverage it in developing countermeasures against its rivals. Richard Moore, the head of MI6, recently characterized China’s “data trap,” asserting that allowing another nation access to critical societal data will ultimately erode sovereignty and control.

Most governments are only beginning to fully comprehend the implications of this emerging threat.

Understanding Data Collection and Usage

In recent congressional testimony, it was argued that defending democracy requires a deeper understanding of how foreign adversaries, particularly China, collect and utilize specific datasets. Proactive defense of strategic data necessitates creative consideration of potential adversarial applications.

Beyond Surveillance: The Broader Implications of “Tech Authoritarianism”

The Chinese state’s employment of technology to reinforce its authoritarian control has garnered significant attention, notably concerning the treatment of the Uyghur population in Xinjiang and the invasive surveillance technologies employed there. While many anticipate the global spread of similar surveillance practices, the true challenge is more substantial and less easily detected due to the nature of digital and data-driven technologies.

The Chinese party-state is already utilizing big data analysis to support its efforts to influence, manage, and control its global environment. It recognizes that seemingly insignificant data points can hold immense strategic value when combined.

Data Access Beyond Cyber Intrusions

While the U.S. and other nations rightly focus on the risks of malicious cyber intrusions – such as those attributed to China-based actors targeting OPM, Marriott, and United Airlines – data access doesn’t always require a direct attack or disruption of the digital supply chain. An adversary like China can exploit legitimate business relationships that result in data sharing.

These pathways are developing, most notably through mechanisms like China’s recently enacted Data Security Law and other state security regulations.

Market Dominance and Patent Applications

Establishing legal frameworks for data access is one approach China employs to secure access to datasets both domestically and internationally. Another strategy involves achieving market dominance. A recent report indicated that China filed the highest number of patent applications in examined tech areas, despite not having a correspondingly high impact factor.

R&D Incentives and Policy Objectives

This doesn’t signify a lack of leadership from Chinese companies. China’s R&D incentive structure encourages researchers to develop applications aligned with specific policy goals, allowing companies to establish market control and refine their products later. Chinese leaders understand that achieving global market dominance and setting global tech standards will also facilitate access to more data and its integration across platforms.

Marrying Data for Revealing Results

China is actively developing methods to combine seemingly unrelated data to generate valuable insights. Any data, when processed effectively, can yield value. For example, a 2019 report highlighted Global Tone Communications Technology (GTCOM), a propaganda department-controlled company providing translation services via machine translation.

GTCOM also integrates its products into the supply chains of companies like Huawei and AliCloud. However, its activities extend beyond translation; a company official stated that the data collected supports state security efforts.

Collecting All Available Data

Furthermore, the Chinese government collects data that may not appear immediately useful, anticipating future technical capabilities. The same technologies that facilitate everyday problem-solving and standard service provision can simultaneously enhance the Chinese party-state’s political control both domestically and internationally.

Rethinking the “Tech Race”

Addressing this growing challenge requires a revised perspective on the “tech race” with China. The focus should not solely be on developing competitive capabilities but also on anticipating future use cases to determine which datasets are worth protecting.

States and organizations must develop methods for assessing the value of their data and the potential value it may hold for those who could gain access now or in the future.

Avoiding the “Data Trap”

We have already underestimated this threat by assuming that authoritarian regimes like China would weaken with increased digital interconnectedness. Democracies will not automatically adapt to the problems created by authoritarian applications of technology. We must reassess risk in alignment with the current threat landscape. Failure to do so risks falling into China’s “data trap.”