China’s ambitions to monitor, influence, and control are not confined within its borders. What began as an effort to surveil its own people has become a global strategy of control, one that extends into the infrastructure of other nations. The US government has begun to push back—restricting Chinese EV software in connected vehicles, banning port cranes linked to Beijing, targeting telecommunications giants like Huawei and ZTE, and most recently spurring investment in key ports. But beyond these isolated measures, America lacks a comprehensive plan to counter China’s growing digital web of surveillance and influence worldwide.
The danger isn’t just theoretical. Under China’s 2017 National Intelligence Law, every Chinese company and citizen is legally required to support the government’s intelligence work. Whether through telecom networks, industrial sensors, or supply chain software, Beijing has engineered a system that allows it the ability to quietly gather data wherever its technology is deployed—all under a legal framework that requires secrecy and non-disclosure of government access.
A Hidden Network of Control
China has spent decades systematically embedding itself into the digital and physical infrastructure of the world. Through aggressive subsidies and its Digital Silk Road initiative, it has made its technology the cheapest option for developing nations, securing footholds in telecommunications, sensors, ports, logistics, and even airport security systems.
Connecting – Telecommunications
Huawei and ZTE, despite years of US sanctions, still dominate the world’s fiber optic networks outside of America’s closest allies. America has many concerns with their control over data flows.
Connecting – Internet of Things (IoT)
IoT is a vast network of interconnected devices that autonomously exchange data and perform tasks, controlling everything from power grids to transportation networks. By 2030, an estimated 40 billion devices will be connected to IoT—equating to nearly eight IoT devices for every person with a cell phone. China has emerged as the dominant player in cellular-based IoT, controlling up to 75% of all global connections. This dominance has been achieved by undercutting competitors, with Chinese providers operating at just one-fifth the average revenue per connection, making their services far more cost-competitive.
Sensing the World’s Supply Chains
China has spread its government sponsored LOGINK logistics data platform globally, enabling it to monitor shipping flows. Now the research below by Lea Thome (former Schwarzman Fellow, Wilson Center) reveals that Beijing is deploying scanners at airports, seaports, and border crossings worldwide.
Blocking Access
In Poland, at the Port of Gdynia, China used its ownership stakes to hamper US military activities—a concerning example of how foreign-controlled infrastructure can become a strategic weapon. With China already invested in over 100 ports worldwide, the risk of supply chain disruption is not a question of if but when. Thankfully a US-European consortium recently agreed to buy the terminal China held in Poland, along with key ports in Panama and elsewhere. Yet China still holds the edge on global ports.
America’s Lack of a Response
While the US has begun raising alarms about China’s influence, it has no coordinated strategy to counter Beijing’s global expansion of digital control. China is not just selling technology—it is giving it away at heavily subsidized rates, or for free—securing long-term dominance in key sectors. US financial agencies—such as foreign aid, development finance, and export credit institutions—are not authorized or funded to effectively counter China’s tactics. Thome underscores the ineffectiveness of US restrictions, noting that despite being placed on the Entity List, China’s scanner giant Nuctech rebranded and continued operations. Today, its scanners remain widespread across Europe’s airports and even high-security events attended by US leaders.
The Risk of Doing Nothing
China’s strategy is slow, methodical, and largely unnoticed—but the consequences will be undeniable. By weaving its technology into the fabric of the world’s infrastructure, China is positioning itself to control global flows of goods, data, and even military logistics.
With more robust action, the US may find itself tied down like Gulliver—bound not by a single thread, but by a thousand small, seemingly innocuous connections that collectively limit its ability to move, respond, and lead on the world stage.
This is not just a matter of economic competition—it is a test of whether the US can remain a global power in the digital age.
Forward by Mark Kennedy.
This article has been cross-published with William&Mary's AidData. To read Lea Thome's article, click here.
Authors


Wahba Institute for Strategic Competition
The Wahba Institute for Strategic Competition works to shape conversations and inspire meaningful action to strengthen technology, trade, infrastructure, and energy as part of American economic and global leadership that benefits the nation and the world. Read more