The Rise of China as a Cybersecurity Industrial Power: Balancing National Security, Geopolitical, and Development Priorities

This article examines the development of China’s cybersecurity industry over the past two decades since the arrival of the internet in that country. This analysis takes place from a primarily security and technology perspective because the national security apparatus occupies a powerful presence in China’s cyber affairs. Moreover, the development of the cybersecurity industry is significantly driven by the development of technological capabilities. Key issues explored include: (1) Chinese decision-making and thinking on cybersecurity development within the context of the Chinese leadership’s general approach to development, national security, and technology advancement; (2) the nature and characteristics of recent Chinese cybersecurity-related development strategies and plans; (3) the drivers behind the development of China’s cybersecurity industry, looking especially at market failures, national security rationales, and government intervention; (4) the proliferation of principal actors and coalitions in the Chinese cybersecurity industry and how this influences its development; and (5) the nature of the relationship between the state and cybersecurity firms, in particular examining four types of interactions: the state as a customer; state hiring of talent; the state’s direct regulatory power, and the state as an investor. The article concludes by considering the international implications of China’s rise as an increasingly capable and confident cybersecurity power.