Decoding the geopolitics of global digital trade and rulemaking

Editor's note: The second Forum on the Rule of Law in Global Digital Trade was held on November 24, 2023 as part of the second Global Digital Trade Expo (GDTE) in Hangzhou, Zhejiang Province, China. The forum aimed to facilitate international dialogues on strengthening rulemaking, regulations, management, and standards in digital trade, fostering global perspectives on reforms and institutional openness. Professor Mira Burri from the University of Lucerne, Switzerland, a specialist in international economic and internet law, was among the experts attending. In an interview with CGTN's Sr. International Editor Abhishek G. Bhaya, Burri provided insights into the dynamic global digital trade landscape and its evolving legal frameworks. The views expressed in the video are her own and not necessarily those of CGTN.

Edited excerpts:

CGTN: In an increasingly polarized world, we have witnessed trade, digital tech and international financial instruments being politicized with the U.S. and China, as the world's two leading powers, increasingly seen as being in a rivalry. How do you see this perceived China-U.S. rivalry or competition impact global digital trade and framing of the laws that will govern the sector in the future?

Mira Burri: We do have these competing interests and a sort of a contestation across stakeholders that would like to be at the forefront of digital innovation and digital growth. And what I find unfortunate in this sort of competition (between the U.S. and China), is that some of the stakeholders actually use protectionist measures like targeting the other parties and protecting their own economy rather than opening up. This is actually going very much against what the data driven economy can enable, a sort of this globalized market where a lot of countries can benefit. So, there is a danger and that is attached to this geopolitically driven protectionism.

This contestation is overall unfortunate. What is interesting, however, is that despite this sort of geopolitical contestation, we see clearly that there is at least some convergence across treaties. So, because countries recognize how important it is and the global digital economy, they do still enter into certain cooperation, at least partially. We see cross currents and currents. It's not all going into one direction. It's quite a complex environment, legally speaking as well as geopolitically speaking.

CGTN: There's been a perception in a large number of Global South countries that the current international laws favor the West as most of these global frameworks were developed by the Western countries in the post-World War era. How important it is to include the Global South in framing of the frameworks that will govern the global digital trade?

Mira Burri: You're right that after the World War II, there has been some sort of a disbalance between Western countries and the Global South. But this is now actually a good point in time to remedy the situation and make sure that this sort of regulatory framework and the economy itself is inclusive and open and takes into consideration the very specific interests and characteristics of the different countries.

One also thinks about sequencing some of the obligations. So, some developing countries are actually willing to agree on some of the provisions, but they say we need more time to implement. I'm a lawyer so I can say that law is flexible. Law can be designed in such a way that properly takes these interests into account and makes the framework inclusive and equitable.

CGTN: China, the U.S. and European Union are among the key players in the digital trade arena. From your vantage point, how do you perceive China's approach to digital trade rulemaking, and are there specific aspects of China's legal and regulatory framework that are noteworthy in the global context?

Mira Burri: It should be mentioned that the landscape of digital trade rulemaking is highly dynamic. So, a lot of countries are participating in this in a very proactive manner so, not only the usual suspects like the United States and the European Union, but indeed all stakeholders across developing and developed countries. And China has positioned itself very recently or maybe the past 5-6 years, but in a very proactive manner in this landscape.

Of course, China has a very dense regulatory framework at home, and it has positioned itself on the international scene with the Regional Comprehensive Economic Partnership (RCEP) which in some parts takes elements from the U.S. and the EU model in facilitation of digital trade. It also has commitments on data flows and a ban on localization measures, but those are linked to also protecting China's and all the RCEP parties' policy space. In a lot of areas, governments can still do a lot of things without violating their obligations under the treaty.

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. Follow @thouse_opinions on Twitter to discover the latest commentaries in the CGTN Opinion Section.)