Countering China’s Digital Espionage and Surveillance: U.S. Sanctions & Strategic Countermeasures, China’s Low-Cost Strategy: A Trojan Horse?
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Abstract
This research explores the growing threat posed by China’s digital surveillance and espionage activities, particularly through its technological advancements in 5G, AI, IoT devices, and telecom infrastructure. It examines China’s legal frameworks, such as the National Intelligence Law and the Data Security Law, which mandate Chinese companies to assist in intelligence-gathering efforts, raising concerns over the potential for state-backed espionage. The study analyzes key incidents, including the Zhenhua Data case and Galwan Valley cyberattacks, highlighting the real-world implications of China’s surveillance operations. It also evaluates the global response to these threats, emphasizing the inadequacy of current countermeasures and the need for enhanced international collaboration. The paper proposes a comprehensive policy approach, including stricter legislative frameworks, the promotion of domestic innovation, enhanced cybersecurity measures, and international cooperation to counter China's expanding influence in digital espionage. The findings underscore the importance of unified action to protect global digital infrastructure and secure national sovereignty from Chinese technological dominance.