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1. Transatlantic Cooperation on Semiconductors: A US Perspective

Author:
Julia Tréhu
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Semiconductors are essential for the global economy, but recent supply chain disruptions and geopolitical tensions have highlighted new risks, leading to new policy approaches. US semiconductor strategy centres around three objectives. First, the funding provided through the CHIPS and Science Act is part of a larger push to strengthen domestic industry and manufacturing. Second, the US seeks to deny strategic adversaries of key technology through export controls. And third, it aims to secure the supply chains for critical technologies. The European and American semiconductor sectors are already tightly intertwined, and further coordination has occurred through forums like the Trade and Technology Council. But challenges remain, including the risk of a subsidy race. Further transatlantic cooperation on key aspects of these new industrial policies can ensure the realisation of shared objectives for a more resilient semiconductor sector.
Topic:
Science and Technology, Economic Policy, Transatlantic Relations, Industry, and Semiconductors
Political Geography:
North America and United States of America

2. Chips: EU’s Ambition in a Transatlantic Technology Bridge

Author:
Nicola Bilotta
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Semiconductors are vital building blocks of digital technologies. In line with its aspiration for strategic autonomy, the EU has recognised vulnerabilities in its chip supply chain, which heavily relies on foreign firms. The intricate relationship between economic security and open trade underlies the EU’s quest to bolster its domestic capacity while enhancing connections with key global partners. Despite the challenges of finding a policy balance, fostering transatlantic cooperation in the semiconductor domains remains a key ambition. To cultivate a more balanced and effective partnership with the US, the EU should capitalise on its comparative advantages to amplify and fortify its strategic positioning in the global supply chain.
Topic:
International Political Economy, Science and Technology, Governance, European Union, Transatlantic Relations, and Industry
Political Geography:
Europe

3. AUKUS and critical minerals: hedging Beijing’s pervasive, clever and coordinated statecraft

Author:
Ben Halton and Kim Beazley
Publication Date:
06-2023
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
AUKUS has a heavy focus on R&D of military capabilities. A number of departments, including defence, foreign affairs and prime ministerial equivalents are engaged. The science and technology to deliver those capabilities must resolve issues of insecure supply chains. Currently, supply chains for processed critical minerals and their resulting materials aren’t specifically included. Yet all AUKUS capabilities, and the rules-based order that they uphold, depend heavily on critical minerals. China eclipses not only AUKUS for processing those minerals into usable forms, but the rest of the world combined. Without critical minerals, states are open to economic coercion in various technological industries, and defence manufacturing is particularly exposed to unnecessary supply-chain challenges. This is where Australia comes in. Australia has the essential minerals, which are more readily exploitable because they’re located in less densely populated or ecologically sensitive areas. Australia also has the right expertise, including universities offering the appropriate advanced geoscience degrees, as well as advanced infrastructure, world-class resources technology and deep industry connections with Asia and Africa, which are also vital global sources of critical minerals. This paper outlines why Australia offers an unrivalled rallying point to drive secure critical-mineral supply among a wide field of vested nations, using AUKUS but not limited to AUKUS partners, how WA has globally superior reserves and substantial expertise, and why northern Australia more generally has a key role to play. The paper also explains why policy action here must be prioritised by the Australian Government.
Topic:
Defense Policy, National Security, Science and Technology, AUKUS, and Quad Alliance
Political Geography:
Australia and Asia-Pacific

4. De-risking authoritarian AI: A balanced approach to protecting our digital ecosystems

Author:
Simeon Gilding
Publication Date:
07-2023
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Artificial intelligence (AI)–enabled systems make many invisible decisions affecting our health, safety and wealth. They shape what we see, think, feel and choose, they calculate our access to financial benefits as well as our transgressions, and now they can generate complex text, images and code just as a human can, but much faster. So it’s unsurprising that moves are afoot across democracies to regulate AI’s impact on our individual rights and economic security, notably in the European Union (EU). But, if we’re wary about AI, we should be even more circumspect about AI-enabled products and services from authoritarian countries that share neither our values nor our interests. And, for the foreseeable future, that means the People’s Republic of China (PRC)—a revisionist authoritarian power demonstrably hostile to democracy and the rules-based international order, which routinely uses AI to strengthen its own political and social stability at the expense of individual human rights. In contrast to other authoritarian countries such as Russia, Iran and North Korea, China is a technology superpower with global capacity and ambitions and is a major exporter of effective, cost-competitive AI-enabled technology into democracies.
Topic:
Security, Science and Technology, Authoritarianism, Cybersecurity, and Artificial Intelligence
Political Geography:
China and Asia-Pacific

5. Getting regulation right: Approaches to improving Australia’s cybersecurity

Author:
Rajiv Shah
Publication Date:
08-2023
Content Type:
Policy Brief
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
As well as having a global impact, Cybersecurity is one of the most significant issues affecting Australia’s economy and national security. On the one hand, poor cybersecurity presents a risk to the interconnected digital systems on which we increasingly rely; on the other hand, well-managed cybersecurity provides an opportunity to build trust and advantage by accelerating digital transformation. Cyber threats can originate from a diverse range of sources and require a diverse set of actions to effectively mitigate them. However, a common theme is that much better cyber risk management is needed to address this critical threat; the current operation of the free market isn’t consistently driving all of the required behaviours or actions. Regulation can provide a powerful mechanism to modify incentives and change behaviours. However, securing cyberspace depends on the intersection of many factors—technical, social and economic. Current regulations are a patchwork of general, cyber-specific and sector-specific measures with a lack of cohesion that causes overlaps and gaps. That makes the environment complex, which means that finding the right approach that will truly improve overall security and minimise unwanted side effects is difficult. It’s necessary to analyse the interconnected factors that determine the net effectiveness of cybersecurity regulations. Furthermore, the pace of technological change is so fast today that, even if regulation is successful when first implemented, it needs to be appropriately futureproofed to avoid becoming irrelevant after even a few months. Recent rapid developments in artificial intelligence are an example of the risks here that will need to be anticipated in any changes to the regulatory regimes.
Topic:
Security, Science and Technology, Cybersecurity, and Regulation
Political Geography:
Australia and Australia/Pacific

6. ASPI’s Critical Technology Tracker The global race for future power

Author:
Jamie Gaida, Jennifer Wong Leung, Stephan Robin, and Danielle Cave
Publication Date:
03-2023
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Western democracies are losing the global technological competition, including the race for scientific and research breakthroughs, and the ability to retain global talent—crucial ingredients that underpin the development and control of the world’s most important technologies, including those that don’t yet exist. Our research reveals that China has built the foundations to position itself as the world’s leading science and technology superpower, by establishing a sometimes stunning lead in high-impact research across the majority of critical and emerging technology domains.
Topic:
Science and Technology, Strategic Competition, and AUKUS
Political Geography:
Australia and Australia/Pacific

7. Seeking to undermine democracy and partnerships: How the CCP is influencing the Pacific islands information environment

Author:
Blake Johnson and Joshua Dunne
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
The Chinese Communist Party (CCP) is conducting coordinated information operations in Pacific island countries (PICs). Those operations are designed to influence political elites, public discourse and political sentiment regarding existing partnerships with Western democracies. Our research shows how the CCP frequently seeks to capitalise on regional events, announcements and engagements to push its own narratives, many of which are aimed at undermining some of the region’s key partnerships. This report examines three significant events and developments: the establishment of AUKUS in 2021 the CCP’s recent efforts to sign a region-wide security agreement the 2022 Pacific Islands Forum held in Fiji. This research, including these three case studies, shows how the CCP uses tailored, reactive messaging in response to regional events and analyses the effectiveness of that messaging in shifting public discourse online. This report also highlights a series of information channels used by the CCP to push narratives in support of the party’s regional objectives in the Pacific. Those information channels include Chinese state media, CCP publications and statements in local media, and publications by local journalists connected to CCP-linked groups.1
Topic:
Science and Technology, Partnerships, Democracy, Social Media, Disinformation, and Chinese Communist Party (CCP)
Political Geography:
China, Asia, and South Pacific

8. Quad Technology Business and Investment Forum outcomes report

Author:
ASPI
Publication Date:
04-2023
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
The Quad has prioritised supporting and guiding investment in critical and emerging technology projects consistent with its intent to maintain a free and open Indo-Pacific. Governments cannot do this alone. Success requires a concerted and coordinated effort between governments, industry, private capital partners and civil society. To explore opportunities and challenges to this success, the Quad Critical and Emerging Technology Working Group convened the inaugural Quad Technology Business and Investment Forum in Sydney, Australia on 2 December 2022. The forum was supported by the Australian Department of Home Affairs and delivered by the Australian Strategic Policy Institute (ASPI). The forum brought together senior Quad public- and private-sector leaders, laid the foundations for enhanced private–public collaboration and canvassed a range of practical action-oriented initiatives. Sessions were designed to identify the key challenges and opportunities Quad member nations face in developing coordinated strategic, targeted investment into critical and emerging technology. Attendees of the forum overwhelmingly endorsed the sentiment that, with our governments, industry, investors and civil society working better together, collectively, our countries can lead the world in quantum technology, artificial intelligence, biotechnology and other critical and emerging technologies. This report reflects the discussions and key findings from the forum and recommends that the Quad Critical and Emerging Technology Working Group establish an Industry Engagement Sub-Group to develop and deliver a Quad Critical and Emerging Technology Forward Work Plan.
Topic:
Security, Science and Technology, Alliance, and Quad Alliance
Political Geography:
Asia-Pacific

9. No end in sight to the global sprint towards digital sovereignty in 2023 (and beyond)

Author:
Katarina Vehovar
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
Even a cursory glance at headlines in Foreign Affairs – “How AI Makes Dictators More Dangerous”, “The Insidious Cyberthreat” and “The Autocrat in Your iPhone” - suggests that 2022 was not the best year for cyber optimists who profess a belief in technology’s democratising power (González 2022). Digital authoritarian systems and “spin dictatorships” continue relying just as much on information manipulation as coercion to consolidate their power (Guriev 2022). Meanwhile, concerns over the use of sophisticated mercenary surveillance systems and invasive AI technology in democracies are also mounting (Deibert 2022).
Topic:
International Relations, Science and Technology, Authoritarianism, Cyberspace, and Digital Sovereignty
Political Geography:
Global Focus

10. China's response to the US tech war: The closing of detours

Author:
Yang Jiang
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In the US-China rivalry, no battle is currently more fierce than the one over technology, with both countries ramping up efforts to pursue global technological leadership. The tech war has intensified under President Joe Biden, with the US’s strangling of China’s technological bottleneck getting tighter and tighter. The US’s stated aims are protecting its national security and foreign policy interests and preventing sensitive technologies with military applications from being acquired by China. Some analysts point to Beijing’s Made in China 2025 as the trigger of the tech war because that is China’s plan to upgrade manufacturing and seek the top positions in global value chains. The US is pursuing a strategy to outcompete and outmanoeuvre China, as is stated in the Biden administration’s National Security Strategy in October 2022: “this decade will be decisive, in setting the terms of our [the US’s] competition with the PRC”. Especially in the sector of semiconductors or chips, where the West controls China’s access to the most advanced technology, US restrictions and its ability to bring its allies into line have been destructive to China’s development. On 21 May 2023, Beijing’s ban of American chipmaker Micron from critical information infrastructure in China signals a first direct retaliation from Beijing. China has also realised that some of its hitherto measures—turning to alternative sources of import, utilising policy loopholes, and sufficing with lower-level technology—are just detours. They are not long-term solutions; nor can they be the foundation of China’s national security. The US restrictions have forced China to adopt new measures to accelerate domestic innovation with more focus on basic research and market forces. How the tech war will play out has important implications for Western countries and global supply chains. This policy brief will focus on China’s responses to the US-waged tech war, specifically: What have been China’s domestic measures to respond to the tech restrictions from the US, and what is China’s potential for technological breakthrough? What have been China’s international responses, and what are China’s options for retaliation?
Topic:
Science and Technology, Sanctions, Strategic Competition, Rivalry, and Supply Chains
Political Geography:
China, Asia, North America, and United States of America