The Effects of Chinese Investments on Digital Development and Data Sovereignty in Southeast Asia: A Case Study of the Philippines

This study investigates the implications of China's Digital Silk Road investments in the digital infrastructure of the Philippines. Employing a qualitative case study approach from 2023-2024, the research involved 41 key informant interviews to examine three key areas: digital connectivity, smart city development, and data governance.The findings reveal a strong inclination towards Chinese digital infrastructure in both the public and private sectors in the Philippines. However, the country is still in the early stages of adopting these technologies, focusing primarily on foundational components like 5G networks, cloud computing, and cell towers.The depth of Chinese tech companies' involvement in Philippines' smart city initiatives varies, depending on the acceptability and support from the national government and local government units. While Chinese investments have not directly influenced the adoption of Chinese data policies and regulations, there are instances where Chinese firms may bypass Philippine data regulations and perform cross-border data transfers. This study suggests that the Philippines is leaning towards Chinese digital infrastructure to drive its digital transformation and smart city development. However, it is crucial for the country to balance the benefits of enhanced connectivity with the potential risks and challenges associated with China's involvement, particularly in the realm of data governance and sovereignty. The Philippines must navigate these complex dynamics carefully to ensure its digital future aligns with its national interests and values.