Strategic Annual Report 2019
Battles over Techno-hegemony: Japan’s Course

Battles over Techno-hegemony: Japan’s Course(Photo AFLO)

69

With attention focused on advanced

Second, the technological capabilities

technologies

ofof a nation do not determine only theinternational relations and international

superiority or inferiority of its military

security, battles over techno-hegemony

power. Technology is also used as ahave surfaced. The most prominent form

diplomatic tool. Some countries canof technological competition is the race

impose constraints on access to criticalfor simple technological advantage. First,

technology, a choke point for products,

each country considers its technologicaland force other countries to makecapabilities to be directly linked to its

concessions. The internationalization

own security interests and, in a moreof the value chain and the deepening

straightforward manner, views themof interdependence make this kind of

as sources of hard power and pursues

statecraft possible. This phenomenon

relative

canin

thetechnologicalcontext

superiority.

becalled“weaponized

Each country expects and/or worriesinterdependence.” China’s pursuit ofabout the disruptive innovations thatdomestic production of semiconductors

introduce cutting-edge technologies as

is aimed at reducing its dependence on

game changers in the military domain.

the United States, which has establishedadominantposition

globalAgainst this backdrop, in the midst of

semiconductor production. Third, it

competition for technological superiority,

has been pointed out that advanced

governments are scrambling to engage

technology combined with artificial

in research and development (R&D) tointelligence (AI) may be used to support

produce technological innovation. For

the regimes of authoritarian states. It

example, the essence of AI innovation,

has been pointed out that voice

as typified by deep learning, lies inrecognition technology and automatic

foundational technologies, advanced

translationequipped

human resources, and good-quality

with deep learning technology are

data. Key foundational technologies

used to manipulate public opinion,

includeand biometric technologies such as

semiconductors

facial recognition technology is usedperformance information processing,

to monitor and suppress people. In

and advanced information technologies.

addition, it has been noted that theseCountries are competing for thesetechnologies are exported and usedtechnologies, talent, and quality data.

abroad, often by authoritarian regimes,

Moreover, from basic research to

to shape public opinion and monitor thesocial implementation, the boundaries

public. Advanced technologies backed

between the military and civilian sectors

by the current information technology

have become increasingly blurred. In

enables large-scale and rapid circulation

the past, technology development andof information, while strengthening theapplication were focused on spin-off,

control of governments over peoples.

the diversion of military technology

It may be said that information andto civilian industries, and spin-on,communication technology has played

the diversion of civilian technology toa role in spreading the norm of liberal

military use. At present, however, “spin-democracy while proliferating andaround” and “civil-military fusion”

strengthening authoritarian politicalare being pursued, transcending themodels. In the midst of this, competition

boundaries between the military andhas begun for technology as a source ofcivilian sectors. It is well known thatsoft power and/or sharp power.

many advanced technologies have dual-technology

incomputing,thatalgorithms,enablehigh-use purposes.

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Strategic Annual Report 2019
Battles over Techno-hegemony: Japan’s Course

US President Donald Trump signed

In addition, in order to promote

Executive Order 13859 announcing

open innovation, as exemplified by“the American AI Initiative” – the US

international

national strategy on AI – on February

competition is taking place in the hiring11, 2019. Priority was given to R&D

of world-class human resources. Inin AI for the purpose of maintaining

China, high-tech workers from Silicon

US leadership in the AI field. In

Valley called hai-gui have made greataddition,

Innovation

contributions to upgrading China’sUnit (DIUx) of the US Department ofadvanced technologies. As described

Defense (DOD) is making efforts toabove, the flexibility of technology

strengthen cooperation with private

R&D frameworks, the globalization ofhigh-tech

Siliconvalue chains, and the mobility of highlyValley, and the Defense Advanced

skilled human resources are advancing,Research Projects Agency (DARPA) isand international interdependence overcontinuing its efforts to support R&D bytechnology is deepening.

theDefensecompaniesinjoint

R&D

projects,civilian institutions, including foreign
Onuniversities.

theotherhand,

thereisamovement to promote decoupling at71

China focuses its attention on fostering

the technological level. This entails

high-tech industries, as seen in its “Madesevering technological interconnectionsin China 2025” plan announced in

to maintain technological superiority.

2015. Moreover, China’s military R&D

In the US, there is growing concern

appears to be moving from “military-that China is acquiring advanced US

civilian“military-technology through legal and illegal

civilian fusion,” deepening cooperationmeans, such as forced technology

with the civilian sector. Althoughtransfer, industrial espionage, cyber

the prospects for the Shanghai Stockespionage,

Exchange’s STAR Market, opened inexchanges, academic exchanges, andJuly 2019, are unclear, the new market

corporate mergers and acquisitions

does show Beijing’s intention to support(M&A). The FY2019 National Defense

high-tech unicorns in the semiconductor

Authorization Act (NDAA), signed

material and AI sectors in which itby President Trump in August 2018,has encouraged domestic production.

included a ban on government agencyintegration”

tojoint

R&D,

personnel

procurement of products from fivegovernment

ChineseChinesetelecom companies and their affiliatescompanies targeted by the NDAA werein May and August of this year, as welltelecommunications equipment giants,

as Chinese AI-related companies insurveillance

October, to the list of entities subjectandcompanies.

cameraThemanufacturers,

telecommunications

added

major

Chineseequipment

to its export controls. As a result ofmanufacturers, all of which are high-these measures, it has become clear

tech companies. Overwhelming support

that the scope of US export controls

for the NDAA in both the Senate andtoward China has expanded beyond

the House indicated that decoupling

the conventional aerospace and defense

from China in terms of advanced

sector to include AI and information

technology was widely supported inand communication technologies.

Washington.
The control of highly skilled personnel
One notable tool for decoupling at theistechnology level is export controls. On

security issue. This is because highly

November 2018, the US Department

skilled personnel are a key element forof Commerce (DOC) welcomed publictechnological innovation that createscomments on the introduction of export

advanced technologies. Against thecontrols for emerging technologies.

backdrop of concerns over the outflow

The emerging technologies discussedof advanced technologies and highly

includedbiotechnologies,

such

as

skilled human resources through foreign

synthetic

biologygenomic

direct investment (FDI) and M&A,engineering; AI and machine learning,

countries are undertaking to strengthensuch as deep learning and speech

regulations on inward direct investment

processing; quantum technologies, suchfor security reasons. The reform of theas quantum encryption and quantumCommittee on Foreign Investment incomputing; and advanced surveillance

the United States (CFIUS), authorized

technologies, such as faceprint andunder the US Foreign Investment

voiceprint technologies. All are cutting-Risk Assessment Modernization Actedge technologies based on advanced(FIRRMA), is a typical example.

information

Behind these efforts is the reality thattechnology.

andandcommunication

Furthermore,

theUS

also

attracting

attention

asaR&D on advanced technologies is72

Strategic Annual Report 2019
Battles over Techno-hegemony: Japan’s Course

currently being led by the private sector.

governing technology in line with their

While there is a need for enormous

own national interests. The Chinese

funds to be obtained from outside forgovernment, for example, has launched

today’s R&D, there is also a security

the concept of the Digital Silk Road andrequirement

will focus on developing and expanding

outflow

tothroughpreventtechnology

participation

inthe standardization process for the fifth-corporate management. These efforts

generation

also aim to prevent high-tech startups

system (5G). The leadership of Chinese

from being acquired by foreign entities.

companies, which are promoting theFurthermore,prevent

standardization of 5G on a global scale,technology transfers through highlyis expected to complement the formation

skilled human resources have becomeof the Digital Silk Road. In the US, inevident even as restrictions on entry

particular, there is growing concern

visas have been tightened. It has recently

that China will set the international

become clear that Chinese engineers andstandard

researchers are severely restricted from

Chinese companies will also play active

entering the US. In this way, policies forroles in the international market for 5G

technological superiority are intricately

base stations. Not only emerging Asianintertwined with the opposing vectors

and African countries but also advancedof open innovation (interdependence)

European countries may accept 5G baseand decoupling (cutoff).

stations from Chinese companies. Theremeasurestomobilefor5G.

communications

Cost-competitive

is no international consensus on the73

Another dimension of the battles overtechnological and security implications

techno-hegemony is related to theof China’s 5G. Thus, China is focusing

international order and institutions

on the formation of the Digital Silk

relevant to technology. The international

Road through the expansion of theorder

governing

5G standard process and the overseas

technology shape how international

installation of 5G base stations. The

technology

formation of the Digital Silk Road,

andinstitutions
isdeveloped,used,transferred and managed, and affectbackedthe power and interests of individualandcountries.

arewill complement China’s “Belt andstriving to mold the international orderRoad” initiative and contribute to theTherefore,countries

byadvanced

information

communication

technology,

promotion of China’s national interests

to individual privacy as a fundamental

at the global level.

value of society, while the latter positions
it as a secondary consideration to socialstability. In addition, there is a conflict
between those who reject government
control and those who place importanceon the principle of national sovereignty
in the governance of the Internet.

China Unicom, one of the three major Chinese telecom
operators, announces the launch of a 5G service for the public in
50 cities, October 2019. (Photo Imaginechina/AFLO)

The international order and institutions
governing technology reflect not only
the economic and security interests
but also the values and norms of eachcountry.

Internationalarrangements

areinstitutional

currentlybeingexplored in various areas such as
cybersecurity, data protection, antitrust,and taxes. For example, the flow ofdigital data is understood to be directly
linked to the economic and security
interests of individual countries, andefforts are underway to create aninternational institution to govern theflow of digital data. The EU establishedthe“GeneralData

Protection

Regulation (GDPR)” to protect datafrom a privacy perspective, while in
China a domestic law (CybersecurityLaw) was enacted to allow government
access to data that could affect national
security, the economy, and the lives ofthe people. The former treats the right

The former is advocated by Westerncountries, while the latter is supported by
China and developing countries (G77).
In this way, attempts are being made toestablish an international order for themanagement of data flow and Internet
governance that have led to conflictsof norms and values concerning digital
governance.
Thus, when it comes to international
relationsconcerningtechnology,

there are two different dimensionsof competition for techno-hegemony.
One is the dimension of technologicalsupremacy, and the other is thedimension of the international ordergoverningtechnology.

However,these dimensions are not mutuallyexclusive. The powers, interests, andnorms

surrounding

technology

inthe international community define
theinternationalorder

governingtechnology. At the same time, theinternational order and institutions

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Strategic Annual Report 2019
Battles over Techno-hegemony: Japan’s Course

governing technology influence theUnder these circumstances, attention

power, interests, and norms surrounding

has been focused on Japan’s stance.

technology in each country. Under these

Industry now has a growing interest

circumstances, countries are competingin digital transformation (DX). The

fiercely for techno-hegemony.

digital society enabled by advanced
informationandcommunication

Japan now faces a difficult challenge.

technology is a world where everything

While Japan has its eyes on China, ais connected online. Japan has strength

large market, it values its alliance within sensors, machine tools and robotics,

the US as the core of its security policy.

which are indispensable for the Internet

At present, however, China’s political,of Things (IOT). Japan needs to show

economic, and ideological presence

its presence in the digital society throughin the international community istechnological innovation. Meanwhile,increasing, while the influence of thein 2018 the Japanese government

United States is declining in relativechangedterms. In addition, some European

regarding government procurement ofcountries have not determined how

telecommunications equipment, andto distance themselves from China

in 2019 it requested private companies

over issues such as 5G. Countries inand organizations in charge of 14

Asia and Oceania are also increasing

critical infrastructure fields to refrain

their presence in the international

fromcommunity,

alwaysequipment that might cause infor-maintain solidarity on these issues.

mation leakage. It is reported that

While Australia and New Zealand,

Japan’s review of the Foreign Exchange

which are eyeing the 5G era, vowed

and Foreign Trade Law is intended toto block Chinese participation in 2018,

strengthen regulations on inward FDI

Papua New Guinea authorized Chinese

for security reasons. Although thesecompanies to build domestic Internet

measures did not directly refer to any

cables. Many countries in Asia andparticular country or company, it isAfrica have adopted China’s low-cost,

generally understood that they are de facto

high-performance telecommunications

measures to exclude Chinese companies.

system.

Japan’s moves appear to align with thoseand

donot

its

procuring

operational

policytelecommunicationsof the US, which has been decoupling75

from China in terms of technology.
However, Japan’s increasing inclination
toward technological decoupling fromChina could also mean a weakeningof its technological cooperation withChina. There is also a risk that Japan’s
technologicalinnovation

willslowdown.
The international order reflects notonly the power and interests of eachcountry but also its values and norms.
International competition for technohegemony is both a race for technologicalsuperiority and a race to establish
theinternationalorder

governingtechnology. Japan will have to decide
whether to build a value chain system
exclusively with members of the liberalinternational order (LIO) or continue
to cooperate and compromise withcountries that aspire to other models
of international order. In the world ofadvanced technology, Japan’s positionin the LIO is being watched.■

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