| Tech Diplomacy in Times of Uncertainty |
| On May 14th, the Tech Diplomacy community gathered to discuss policy challenges, investment and entrepreneurship, and the historical roots of this emerging diplomatic practice. The event included a panel, moderated by Tech Diplomacy Network CEO Christina Steinbrecher-Pfandt and featuring Sara Ahmadian, investor and co-founder of The Laundry, Graham Drake, Senior Policy Advisor at the Tony Blair Institute for Global Change, Lutz Finger, author, lecturer, and AI entrepreneur, and Martin Rauchbauer, co-founder of the Tech Diplomacy Network, in addition to remarks from AI professor and author De Kai on the divide between the humanities and tech. |
| News Roundup Top Tech Diplomacy Resources D.C.-based CSIS’ Futures Lab is assessing how AI tech like ChatGPT and DeepSeek can be used in diplomacy and to support crisis decision-making: According to director Benjamin Jensen, the idea of using AI in foreign policy “has been around for some time,” but “putting it into practice is still in its infancy,” Scott Neuman reports for NPR, also touching on efforts in other nations like the U.K. and Iran to explore the use of AI in negotiations and other diplomatic practices, and the implications of doing so. Want to learn more about AI’s impact on diplomatic practices? Check out this informative resource on AI diplomacy from Diplo. The Trump administration is overhauling the cyber and tech diplomacy apparatus of the U.S. State Department, with Secretary of State Marco Rubio proposing to relocate the Cyberspace & Digital Policy Bureau elsewhere, accompanied by the opening of a new “Bureau of Emerging Threats”: Rubio argues the changes will “bring the Department into the 21st Century,” but experts and former officials are “alarmed” by a plan that “threatens to splinter the cyber diplomacy mission,” Eric Geller reports for Cybersecurity Dive. Global A transatlantic rift is widening over tech regulation, with Brussels deciding last month to move ahead with the Digital Markets Act’s strict take on online content rules, causing ire in Washington. The Trump White House scrutinized the move, complaining both the DMA and Digital Services Act are essentially discriminatory in dictating “how American companies interact with consumers in the European Union” back in February, although EU Commission President Ursula von der Leyen defended the move last month by arguing the body applies their rules “fairly, proportionally, and without bias. We don’t care where a company’s from and who’s running it. We care about protecting people.” The World Economic Forum’s latest Global Cybersecurity Outlook finds 72% of businesses see cyber security risks rising” and “nearly half cite malicious use of generative AI as a top cybersecurity concern,” noting cyber-espionage and IP theft as especially worrying. While nations are responding to these concerns according to Harvard University’s Belfer Center’s recently-launched Cyber Strategy Scorecard, researchers find there’s no one-size-fits-all model, emphasizing the impact of local contexts and unique threat landscapes. On World Press Freedom Day earlier this month, UN Human Rights Chief Volker Türk warned AI-driven algorithms are shaping how people receive information online, posing major concerns for free expression: “in regulating AI, governments must assess its impact on human rights. It is crucial to have more transparency in how data is used, how content is curated, and how algorithms are designed.” Check out April’s edition of the digital policy roundup from Tech Policy Press here, which focuses on updates on content moderation, AI, competition, and data governance policies globally. North America Joshua Kurlantzick explores U.S. President Trump’s impact on foreign policy and elections globally for the Council on Foreign Relations, noting he “has become the main factor, outweighing domestic issues, in a wide range of elections held around the globe this year – and probably next as well.” A provision in a new bill in the U.S. House of Representatives proposal seeks to freeze state AI laws until 2035, sparking backlash from state leaders and privacy watchdogs who call it a federal overreach that muzzles policymakers trying to safeguard AI use and development in the absence of comprehensive national policy – an act that seems more political than practical to some critics. This write-up assesses AI developments under the Trump administration in April, touching on new rules for federal agencies regarding AI use and procurement, updates in domestic AI datacenter development, and more. In a rare instance of continuity between the Trump and Biden administrations, the Trump-run Department of Justice is quietly sustaining the former administration’s initiative to target government contractors for lax cybersecurity under the Civil Cyber-Fraud Initiative, launched in 2021. A recent survey found a majority of Canadians polled believe “false information or misinformation had a major impact” on last month’s federal election, underscoring ongoing global concerns of election interference caused by information pollution. The elections were affected heavily by President Trump whose recent threats, for example, sparked an unlikely agreement on how to move forward with the nation’s energy policies to lessen reliance on U.S. resources, and inspired the winning candidate, now-Prime Minister Mark Carney, to deliver “a stunning rebuke to Trump” in remarks following his electoral victory. The U.S. has fallen behind in manufacturing advanced chips at scale, with Asian nations, especially Taiwan, South Korea, and Japan, now leading in production. The Trump administration is attempting to rebuild its domestic chip industry through tariffs and other incentives, but chipmaking is a “deeply integrated ecosystem” across several nations. Trump’s strategy is creating uncertainty for global partners and disrupting supply chains, but building a chip industry isn’t just about factories and funding, Suranjana Tewari writes for the BBC; rather, it requires global cooperation and long-term planning, areas where the U.S. is currently falling short. Get the most recent updates on the Federal Trade Commission’s antitrust suit against Meta regarding the company’s purchase of Instagram and WhatsApp here. Africa A new sweeping cybersecurity law in Zambia is causing concern regarding the potential undermining of citizens’ freedom of expression through the undue monitoring of electronic comms, although the government insists the move is intended to target threats like fraud and disinformation instead of invading privacy, denying any plans for mass surveillance – journalists, civil society members, and experts are not thoroughly convinced, with some pointing out the timing is suspect as elections are set to take place next year. A “diplomatic row” has unfolded between Elon Musk and the South African government over the former’s Starlink satellite service and licensing conditions, which include companies having “30% ownership by historically disadvantaged groups,” Khanyisile Ngcobo writes for the BBC. Although Starlink is expanding across other African nations, Musk is clearly irked by these requirements in his home country, previously claiming Starlink wasn’t allowed to operate in the country because he is white while undermining efforts meant to empower Black South Africans, born from the devastating effects of apartheid. Regulators retorted Starlink never even applied for a license – but with Musk being part of Trump’s “inner circle,” the U.S. President has also weighed in on what he terms “racist ownership laws” by threatening to boycott this year’s G20 summit. A new 60 billion USD African AI Development Fund is in the works to invest in homegrown AI talent. The newly-created African Council for Artificial Intelligence will oversee the fund, which was created with the goal to “create and retain AI practitioners who can meet the continent’s needs,” with plans to finance AI education, public awareness programs, and research support. A recent investigation from Stephanie Wangari and Gayathri Vaidyanathan at Rest of World investigates the “hidden network of African workers powering AI,” who are subject to low pay and regular exposure to distressing online content while tech corporations distance themselves both legally and ethically. In response, a coalition of African workers has begun pushing for fair pay and mental health support, and this spotlight on AI’s hidden human cost is adding urgency to calls for better labor standards. Asia Five experts weigh in on how India’s sweeping new licensing rules for satellite internet announced earlier this will affect Starlink’s goals in the country: if the company “insists on moving fast and breaking things, it will find itself permanently grounded,” Irina Tsukerman, a New York–based human rights and national security lawyer, shared with author Ananya Bhattacharya in this piece for Rest of World. Check out this article exploring the dynamics of competition in the semiconductor industry in East Asia, which maps developments across the region. The upgraded ASEAN-Australia-New Zealand Free Trade Agreement entered into force on April 21st, committing countries to adopt common standards for e-invoicing, digital authentication, and open government data, an effort expected to cut red tape by making systems “interoperable,” reduce compliance costs for cross-border e-commerce, and enabling smaller firms in the region to grow. This week, China’s President Xi Jinping announced a significant financial push to expand China’s influence in Latin America and the Caribbean, pledging an amount of yuan totaling around 9 billion USD in credit and increased corporate investment and trade. The initiative, part of China’s ongoing effort to compete with U.S. influence, was accompanied by a commitment to import more goods from the region and visa-free travel for some countries. Some remain skeptical, with Brazilian President Lula da Silva welcoming cooperation but warning Latin America should not rely too much on China, or any nation for that matter. As tech disruption and climate pressures impact South-Eastern Asia’s economy, upskilling has become the region’s top workforce priority: the region’s “talent landscape is increasingly borderless, with skilled professionals – especially those in emerging and technical fields – moving freely across the region…this is heightening competition, compelling companies to act swiftly and strategically in upskilling and reskilling their key talents,” says Tieu Yen Trinh, founder and CEO of Talentnet Viet Nam. Europe The EU is weakening proposed rules to scrutinize foreign investments into key tech like semiconductors and AI despite initial efforts to safeguard these sectors from Chinese dominance, with a new draft compromise shifting from mandatory screening to simply recommending it – the new text effectively “waters down the original Commission proposal by narrowing the list of strategic sectors subject to mandatory FDI screening, where the EU executive said that EU countries would be required to screen foreign investments in AI, chips, quantum technologies, energy technologies, space, drones or critical medicines, and “stops short of requiring national authorities to act,” Camille Gijs and Francesca Micheletti report for Politico EU. The EU commissioner for human rights, Michael O’Flaherty, makes a solid argument in recent remarks for why the regulation of tech doesn’t have to hinder innovation, and actually isn’t. The European Commission came out swinging with its new digital competition rulebook, slapping Apple with a 500 million euro fine and Meta with 200 million euro fine for violating the Digital Markets Act’s fair-play rules. Apple was cited for barring app developers from revealing cheaper off-platform payment options to users, while Meta was hit for its data-harvesting practices. The companies have two months to comply or face further penalties – unsurprisingly, Apple is appealing the move, saying it singles in on the company and undermines their business incentives, while Meta claimed the body is overreaching, further fodder for the U.S. administration’s claims Europe is unfairly targeting domestic tech corporations. The U.K. government presented its final Strategic Priorities Statement for online safety to Parliament this week, outlining key policy goals (safety by design, transparency and accountability, agile regulation, inclusivity and resilience, and technology and innovation) that will guide digital regulator Ofcom in implementing the Online Safety Act. Earlier this month, French authorities identified dozens of disinformation campaigns operated by Russian actors carried out between August 2023 to March 2025 through propaganda group “Storm-1516”, which utilizes AI and other digital tools to cause widespread information pollution, ultimately finding them “effective in distributing anti-Ukrainian and anti-Western narratives to Western audiences.” Does Europe’s startup scene pose a promising alternative for innovators to a precariously-situated Silicon Valley under the Trump administration? Tighter immigration policies and reduced funding in the States could prove a valuable opportunity for the EU, but not without challenges, Jackie Snow writes for Quartz. Latin America Venezuelans who once relied on low-paid digital “clickwork” jobs, like tagging data and labeling content, are now being displaced by generative AI, with many workers finding themselves without steady income or job security. Visa is partnering with startup Bridge to roll out stablecoin-linked Visa cards across Latin American countries like Argentina, Colombia, and Mexico. Latin America’s high inflation and large unbanked population make it ripe for crypto payment adoption, and stablecoins, which offer dollar stability, are fast becoming an appealing solution in the region. This thoughtful piece from Jorge G. Castañeda explores what Latin American countries could expect from Trump’s new policies: while they “haven’t borne the brunt” of his “protectionist measures, and in some cases have collaborated with his administration,” this “doesn’t mean that they will be immune to the fallout.” Gabriela Paz-Soldan provides an April round-up of China’s activities in the region for the Council on Foreign Relations. Related, Chinese President Jinping is attempting to court Latin American nations to cooperate with his on tech as Trump’s global tariffs loom. El Salvador’s government has launched an initiative to introduce bitcoin to young people through the national social studies curriculum for students, encompassing “three hours per week of Bitcoin and financial education” to improve financial literacy. Oceania A series of suspected undersea cable sabotages is spurring international action, following the mysterious severing of multiple ocean cables connecting Taiwan and an archipelago of islands off the Chinese coast. European telecom giants are urging NATO to treat cable protection as a top security priority, with companies touting new tech to monitor and repair them. Responding to undersea infrastructure threats “requires a layered, whole-of-nation approach,” argues the CEO of Australia-based Strategic Forum Ross Babbage, as reported by Gordon Arthur at Defense News. Australia is investing big to reduce dependency on China for critical minerals, with Prime Minister Anthony Albanese announcing a 1.2 billion AUD plan to create a strategic reserve by tapping into vast lithium, cobalt, and rare-earth deposits in the country. “We need to do more with the natural resources the world needs, and that Australia can provide,” according to Albanese, framing the move as both a benefit to the economy and national security. The government may face struggles on its way to self-reliance, however. New research from Dr Natalie Sheard, a law school researcher at the University of Melbourne, finds the use of AI in hiring practices “risks discriminating against applicants, due to biases introduced by the limited datasets the AI models were trained on,” Josh Taylor reports for The Guardian. Pacific Island nations are stepping up efforts to harness e-commerce as a driver of growth, and progress on the Pacific Regional E-commerce Strategy is promising, but there remains a need for better trade logistics, simpler digital payment systems, and improved access to financing for startups, a convening of the Pacific Islands Forum Secretariat determined last month. New Zealand’s government is pushing a bold plan to disallow children under 16 from using social media platforms, unveiling a draft bill that would force platforms to verify users’ ages or face financial penalties. “This is about protecting our children. It’s about making sure social media companies are playing their role in keeping our kids safe,” Prime Minister Christopher Luxon maintains. The proposal comes amid rising worries about cyberbullying, exploitation of minors, and mental health risks, but critics note enforcement will be tricky. Beijing’s grip seems to be tightening on the Solomon Islands after allegedly pressuring a minister to “quit an international group that challenges China’s authoritarian regime,” highlighting how Chinese aid often comes with the expectation of political alignment. |
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Tech Diplomacy Newsletter 5-25
