Tech Diplomacy News: global collaboration and competition intensifies
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Read Katharina Höne’s insightful new article here, which examines how diplomacy is being reshaped as governments engage more directly with multinational tech companies. This work is an outcome of the tech diplomacy workshop held in May by the Tech Diplomacy Network, the Diplomatische Akademie Wien, and Open Austria. The State Department has slashed its cyber diplomacy unit, ignoring Congress’s mandate to strengthen U.S. cyber alliances and leaving allies vulnerable to foreign influence and escalating cyberattacks, Annie Fixler and Johanna Yang write for Cyberscoop. |
| Global The United Nations’ cyber diplomacy efforts reached a milestone with the Open-ended Working Group on ICT security adopting its Final Report last month, setting the stage for a future permanent cybersecurity framework and new “Global Mechanism” to guide responsible state behavior in cyberspace. Despite no “revolutionary progress” being made, countries did agree on basic principles like tackling ransomware, recognizing threats to critical infrastructure, and continuing work on existing norms. However, deep divides between states remain unresolved, particularly around international law, stakeholder inclusion, and calls for binding treaties. While the mechanism could facilitate global cyber cooperation, without stronger leadership and accountability, “consensus may come at a cost, ignoring divides and risking deadlock,” Pavlina Pavlova and Christopher Painter write for Lawfare. By partnering with Africa’s rapidly growing tech ecosystem, rich critical mineral reserves, and renewable energy potential, Europe can strengthen its digital infrastructure and diversify supply chains, Nii Simmonds and David Timis write for the World Economic Forum. The U.S. may be losing the AI race to China due to an aging power grid that’s struggling to keep up with energy-hungry AI systems. As American companies scramble for workarounds, China is quietly building world-class energy infrastructure, meaning the U.S. could face an uphill battle just to stay in the game. Tech Policy Press’ digital policy roundup for July covers content moderation, AI, competition, and data governance updates from around the world. North America U.S. President Trump’s “AI action plan” is being hailed by tech giants as a big win, with executive orders that will cut red tape, boost AI exports, and clamp down on what he calls “woke” AI. While companies like Meta, Nvidia, and OpenAI celebrate, critics warn the plan favors corporate power over public interest, Dara Kerr reports for The Guardian. Google is teaming up with Kairos Power and the Tennessee Valley Authority to build a nuclear plant in Tennessee to power its data centers by 2030. This marks the first-ever U.S. utility deal for next-gen nuclear energy, key to meeting surging electricity demand from AI and other digital infrastructure. U.S. Energy Secretary Chris Wright praised the project as “essential to U.S. AI dominance and energy leadership,” Laila Kearney writes for Reuters. Last week, the U.S. Department of Energy announced funding opportunities of up to 1 billion USD to “advance and scale mining, processing, and manufacturing technologies across key stages of the critical minerals and materials supply chains,” seeking to decrease reliance on “foreign actors.” Canadian leaders are pushing for more homegrown infrastructure and innovation to stay competitive and independent in the AI and cloud space, with the federal government pledging $2 billion for AI development and data center companies aiming to operate more sustainably and efficiently. While much of the tech industry has shifted right, OpenAI is assembling a team of seasoned Democratic operatives and deploying campaign-style tactics and opposition research to protect the company’s future in California, where regulators are closely scrutinizing its shift to a public benefit corporation. Cryptocurrency markets are surging, driven in part by strong policy support from the Trump administration, but not without risks, John Towfighi reports for CNN. Africa Big Tech is ramping up “AI for Good” initiatives across Africa, with Google, Microsoft, and Meta pouring millions into projects targeting areas like disaster relief and healthcare across the region. However, some argue these efforts are less about altruism and more about harvesting data and gaining influence, effectively making Africa a testing ground for foreign-made AI, with local experts worried about long-term dependency and lack of true local control, Damilare Dosunmu reports for Rest of World. Following tensions between South Africa and Elon Musk’s Starlink, the nation is considering loosening its rules to let the satellite internet giant enter the market without meeting local Black-ownership requirements. Critics say the move unfairly bends the rules for a billionaire who has criticized the post-apartheid requirements as “openly racist,” Adekunle Agbetiloye reports for Business Insider Africa. Kenya is seeking to make headway in the digital finance world, with plans to embrace blockchain, stablecoins, and Bitcoin reserves in a nation where crypto trading is already flourishing. Cabinet Secretary William Kabogo called digital assets “the future of finance” and stated the move is a pivot “from apprehension to leadership.” For Nigeria’s financial sector, AI is a “double-edged sword”: it’s boosting cybersecurity with smarter fraud detection and real-time threat responses, while at the same time arming cybercriminals with new and improved tools like deepfakes and malware. Experts warn banks will be left exposed unless key challenges are addressed, Ayowole Popoola writes for TechCabal. Ghana and Lesotho are teaming up to boost Africa’s influence in AI and digital tech, launching cross-border initiatives and forming a 10-nation task force to unify digital policy. Asia China quietly rolled out rare earth mining quotas last month, signaling a tighter government grip on this strategic sector amid ongoing trade tensions. The move comes as Beijing increasingly limits who can access quotas and increases export restrictions, with insiders saying the secrecy reflects rising geopolitical sensitivity around rare earths that are vital to tech and defense industries. After the fall of the Assad regime, Syrian tech workers are returning home to help “establish tech-driven startups and overhaul Syria’s digital infrastructure,” Kaya Genç reports for Rest of World. Singapore’s top tech minds are being lured away by the high salaries touted by global tech giants, leaving the government scrambling to retain its best talent by emphasizing purpose and impact over pay. The UAE is investing heavily in data centers and striking deals with tech giants like OpenAI and Microsoft to “make itself indispensable – and untouchable – to both allies and adversaries” when it comes to AI, Alainna Liloia reports for Tech Policy Press. However, concerns for authoritarian use of tech by the government and compliance with human rights principles persist. Last month, Chinese Premier Li Qiang called for global collaboration on AI at the World Artificial Intelligence Conference in Shanghai, urging countries to work together on development and security standards. With tensions high and chip restrictions in play, Qiang positioned China as “willing to share advances with other countries, particularly developing ones in the global south.” China is rapidly expanding its digital influence across the Indo-Pacific through cyberattacks and tech investments, and in response, the U.S. and allies like Japan, India, and Australia are ramping up coordinated cyber and tech partnerships to counter this “digital curtain.” Microsoft has launched an investigation into claims that Israel’s military surveillance agency used the tech giant’s Azure cloud platform to store massive amounts of intercepted phone calls against the company’s policies, following accusations that the tech giant was complicit in human rights abuses against Palestinians. Europe The EU has published its long-awaited General-Purpose AI Code of Practice, giving developers a playbook to stay in line with the new AI Act and avoid any legal repercussions from noncompliance, delving into transparency, copyright, and safety rules. While major players are on board with signing the Code, like OpenAI, Google, and Anthropic, Meta has deemed it too vague and overreaching, sparking debate about the balancing of innovation and regulation in Europe. A recent U.K. law requiring ID age verification checks for online content from a variety of platforms is stirring controversy, with critics warning it compromises privacy and could lead to censorship. U.S. lawmakers have also voiced concerns that these rules could stifle American tech firms and impose on free speech, but U.K. officials remain firm on enforcement. Concern is growing in Europe over dependence on American tech giants like Amazon, Google, and Microsoft, especially following recent political tensions. Governments and experts are exploring domestic alternatives to boost Europe’s tech independence, but limited local alternatives and market dominance by U.S. firms present significant challenges. A new trade deal between the EU and U.S. has both sides claiming a win, but some worry compromises to meet “Trump’s terms” may leave the door open to future tensions over the former jurisdiction’s strict tech rules: while Brussels insists its digital laws weren’t up for negotiation, U.S. officials are already signaling they’ll keep pushing back, particularly on content moderation, competition, and AI regulations, Pieter Haeck, Mathieu Pollet, Eliza Gkritsi, and Jacob Parry report for Politico EU. Russia has begun blocking voice calls on WhatsApp and Telegram, claiming the encrypted apps are used for “deceit and extortion.” Critics, including Meta, say it’s a move to force users in the country onto less secure platforms that are easier to monitor as part of Moscow’s wider crackdown on digital freedoms, Grace Moon reports for The Washington Post. Elon Musk’s social platform X is refusing to hand over data tied to allegations of algorithm manipulation, foreign interference, and unauthorized data extraction, claiming the French authorities’ investigation is “politically-motivated.” Crypto giants like Coinbase and Kraken are urging the U.K. government to quickly develop a national stablecoin strategy to avoid lagging behind the U.S. They argued that without clear, proactive regulation, Britain risks becoming a “rule-taker rather than a rule-maker.” Latin America A major U.S. tech lobby group appears to have influenced Trump’s decision to hit Brazil with tariffs and launch a trade investigation, citing concerns over digital regulation, censorship, and taxes. The move mirrors complaints from companies like Google and Meta, who argue Brazil’s policies unfairly target American tech firms and restrict free speech. Latin America is racing to build its own AI rules before outside powers like the EU or U.S. set the tone, aiming to protect rights without stifling innovation. Prompted by increasing AI threats such as the use of deepfakes in elections, countries across the region are proposing laws to address issues from facial recognition to algorithmic bias: “transparency, localized ethics, and frequent updates—not static rules—could form the backbone of Latin America’s own AI identity,” the Latin American Post staff write. The region’s fintech boom is being fueled by a mix of smart regulation, massive demand, and tech innovation, with nations moving towards streamlined rules and payment networks that make it easier for startups to scale. Mexico is stepping up to become a major player in the global semiconductor industry, but experts warn that security must be a top priority, as vulnerabilities like weak access controls and fragmented security efforts must first be addressed. Amid severe inflation and economic instability, Argentina has become Latin America’s leader in cryptocurrency adoption, with nearly 20% of its population holding digital assets. With support from a pro-crypto government and increasing use, the country’s experience is emerging as a case study in how digital currencies can still gain ground in financially volatile environments. Learn more about crypto regulations across Latin America here. Oceania Australia is set to become the first country to ban social media for under-16s in December, seeking to curb online harms and promote better mental health outcomes. While parents and lawmakers are backing the move, teens and tech companies aren’t thrilled about the bold move, Charley Locke reports for WIRED. Earlier this month, New Zealand’s Privacy Commissioner announced new privacy rules to govern the use of biometrics by agencies, aiming to balance innovation with stronger protections. The code will introduce legal guardrails around the collection and use of this sensitive data, targeting intrusive uses and promoting transparency with the public. The Pacific Fiber Conference held this month in Fiji fostered discussion on the importance of quick and reliable connectivity for the country’s future, with the head of the Competition and Consumer Commission emphasizing a need for clear regulations and stronger infrastructure. Google will pay a 36 million USD fine to settle claims it cut unfair deals with Australia’s top two telecom companies, Telstra and Optus, to block the installation of rival search engines on Android phones, a move Australia’s watchdog says stifled competition. Australia is investing tens of millions into helping Vanuatu build two data centers, part of a larger deal under a new agreement aimed at strengthening economic and digital ties between the two nations. It’s “a small price to pay to keep China at bay,” Simon Sharwood writes for The Register. |
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