The Center for Strategic and International Studies (CSIS) released a new report titled “Inflection Point: Selecting Trusted Technology for Digitalization and Connectivity,” highlighting the crucial role of trusted suppliers and financing mechanisms in steering global digitalization as developing nations upgrade their digital infrastructure.
The report, authored by Erin Murphy,Deputy Director of Chair on India and Emerging Asia Economics and Senior Fellow, Emerging Asia Economics for CSIS, underscores the growing stakes in the global race to bridge the digital divide, particularly in the Global South. Through its Belt and Road Initiative’s Digital Silk Road (DSR), China has rapidly expanded its digital footprint in the Indo-Pacific region and in Africa by financing and building wireless networks, subsea cables and satellites. These investments often come with cybersecurity and privacy concerns, as well as risks of surveillance and data misuse.
The U.S. and its allies are positioned to counter these risks by offering secure, affordable, and efficient alternatives. However, host nations often prioritize speed and cost in their decisions, highlighting the need for swift, scalable, and competitively priced solutions from trusted suppliers.
A key resource that can help promote trusted technology abroad increasing flexibility in Export-Import Bank of the United States (EXIM) financing to promote the adoption of Open RAN solutions and trusted suppliers in telecommunications to enhance interoperability and security. Adjustments to EXIM’s policies could level the playing field, allowing trusted providers to compete with heavily subsidized alternatives from China and address some of the financial and logistical hurdles to Open RAN deployment.
In addition to EXIM, the report outlines additional resources to promote and support trusted technology abroad. The U.S. International Development Finance Corporation (DFC) prioritizes communications and technology investments in emerging markets. With tools like loans, equity financing, political risk insurance and technical assistance, it has supported initiatives like renewable energy for telecom towers in Africa and expanded mobile services in underserved regions. The CHIPS Act of 2022 authorized billions of dollars for funding to the Departments of Commerce, Defense, and State to develop onshore domestic manufacturing of semiconductors. It also included appropriations to fund the USA Telecommunications Act to support the global telecom supply chain and develop Open RAN.
Connectivity is not just an economic necessity but a strategic imperative; leveraging tools like EXIM and the DFC will help drive investments in trusted technology and enhance global connectivity. Proposals like flexible financing for Open RAN and investments in digital infrastructure upgrades are critical to establishing a secure and inclusive global digital ecosystem. By refining investment strategies and accelerating deployment, the U.S. and its allies can provide an effective counterweight to high-risk alternatives, ensuring that the digital future is built on trust, security, and shared values.