The Impact of China’s Digital Silk Road on the Digital Domain of the Philippines

The Philippines is pursuing an ambitious digitalisation agenda under President Ferdinand Marcos Jr., but this effort is complicated by the pervasive influence of China's Digital Silk Road (DSR). While Chinese technology provides cheap alternatives in 5G, cloud computing, and fintech, it introduces significant risks regarding data privacy, national security, and the potential spread of digital authoritarianism. These challenges are exacerbated by an outdated legal framework that fails to address modern technological breakthroughs. The authors argue that the Philippines must update its legislation and diversify foreign investment to build internal resilience and safeguard its digital sovereignty.

• The Philippines' digital economy is growing rapidly, with its internet economy valued at USD 7.5 billion in 2020 and projected to reach USD 28 billion by 2025, growing at an annual rate of 30 percent.
• China's Digital Silk Road (DSR) has led to a heavy influx of Chinese technology into the Philippines, specifically dominating 5G telecommunications and introducing cloud-based and financial technologies.
• The adoption of Chinese technology, such as the DITO project and the 'Safe Philippines' surveillance initiative, creates national security risks due to the Chinese National Intelligence Law of 2017, which may require companies to provide data to the Chinese government.
• The Philippines' legal framework is outdated and fails to address modern technologies like AI, quantum computing, and cloud technology, with some laws like the 1995 Public Telecommunications Law lacking substantial provisions on the internet.
• There are concerns that China is using the DSR to export a model of 'technology-driven authoritarianism,' utilizing tools like content moderation, data localisation, and surveillance to control citizens.
• The Philippines is currently the third most expensive provider of ICT services among all ASEAN countries, and its bureaucratic processes hinder the entry of new investors and competitors.

APA

III, J. S. A., & Baladjay, D. M. N. (2024). The Impact of China’s Digital Silk Road on the Digital Domain of the Philippines. Peace Research Institute Oslo. https://cdn.cloud.prio.org/files/bfb164c7-1383-45f5-9e81-66fa5c7f653c/ISEAS_Perspective_2024_43.pdf?inline=true

Chicago

III, Julio S. Amador, and Deryk Matthew N. Baladjay. The Impact of China’s Digital Silk Road on the Digital Domain of the Philippines. Peace Research Institute Oslo, 2024. https://cdn.cloud.prio.org/files/bfb164c7-1383-45f5-9e81-66fa5c7f653c/ISEAS_Perspective_2024_43.pdf?inline=true.

Wikipedia

{{cite report |last1=III |first1=Julio S. Amador |last2=Baladjay |first2=Deryk Matthew N. |title=The Impact of China’s Digital Silk Road on the Digital Domain of the Philippines |publisher=Peace Research Institute Oslo |date=12 June 2024 |url=https://cdn.cloud.prio.org/files/bfb164c7-1383-45f5-9e81-66fa5c7f653c/ISEAS_Perspective_2024_43.pdf?inline=true |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{iii2024impact, author = {III, Julio S. Amador and Baladjay, Deryk Matthew N.}, title = {{The Impact of China’s Digital Silk Road on the Digital Domain of the Philippines}}, institution = {Peace Research Institute Oslo}, year = {2024}, month = jun, url = {https://cdn.cloud.prio.org/files/bfb164c7-1383-45f5-9e81-66fa5c7f653c/ISEAS_Perspective_2024_43.pdf?inline=true}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }