Southeast Asia’s Tech Pivot increasing reliance on Chinese technology firms is accelerating the region’s digital transformation but also raising serious cybersecurity and geopolitical concerns. At recent cybersecurity forums held in May, experts emphasized how companies like Huawei have become integral to the region’s digital infrastructure—particularly in telecommunications, cloud services, and artificial intelligence. Huawei’s rapid expansion across countries such as Indonesia, the Philippines, and Cambodia is largely due to its competitive pricing, large-scale capabilities, and localized support.
In Indonesia, Huawei has emerged as a dominant telecom provider, offering services tailored to local needs. Analysts, however, note a complex relationship between Jakarta and Beijing, with varying opinions on the risks associated with Chinese technology. Huawei’s success isn’t just financial—its involvement in soft diplomacy, such as funding educational and professional development initiatives, has made it more appealing than many Western competitors.
Similar developments are evident in Cambodia, where limited domestic tech capacity leaves the country dependent on external partners. Chinese firms have filled that void, forging partnerships to bolster Cambodia’s digital infrastructure. In February, local company ByteDC inked a cloud technology agreement with Huawei, followed by a March collaboration between Smart Axiata and Huawei to push industrial digitalization.
Asia’s Tech Pivot Security Concerns and Strategic Tensions
Despite these development strides, Chinese tech dominance brings significant risks. Analysts cite Beijing’s security laws that could require companies to support state intelligence operations—a concern that has led countries like the U.S. and Australia to block Huawei from critical networks. The Philippines presents a cautionary tale: following closer ties with the U.S., it experienced a rise in cyberattacks, sparking fears over the vulnerability of Chinese-built systems.
Sherwin Ona of Taiwan’s Institute for National Defence and Security Research noted that the Philippines lacks a clear inventory of critical digital infrastructure, making it harder to defend against sophisticated threats. With Huawei deeply embedded in the country’s 5G and cloud networks, concerns are mounting over how secure these systems really are.
Analysts agree that Southeast Asia finds itself in a difficult position, caught between China’s aggressive tech outreach and long-standing Western alliances. The so-called “Digital Silk Road,” part of China’s broader Belt and Road Initiative, has expanded Beijing’s influence through undersea cables, data centers, and 5G installations.
Striking a Delicate Balance
The Asia’s Tech Pivot region’s growing technological dependence on China has prompted calls for a more balanced approach. Deryk Baladjay of De La Salle University warned that China’s dual role—as both a development partner and a geopolitical rival—makes the relationship inherently precarious. He cited the Philippines’ scrapped US$10 billion investment pledge from China as an example of how political tensions can derail economic projects.
While countries like Malaysia and Indonesia continue to attract Chinese tech investments amid maritime disputes, experts argue for diversification of partnerships. Collaborations with countries like Japan and Australia could offer Southeast Asia more technological autonomy.
Mark Manantan of Pacific Forum believes ASEAN nations should redefine their innovation strategy—not merely accepting foreign tech, but striving to become creators of technologies suited to their own contexts. As the region navigates this digital crossroads, the challenge lies in leveraging China’s technological advantages while safeguarding national sovereignty and cyber resilience.
