The Digital Silk Road in Support of State-driven Standard-setting: Implications to European Firms

Technical standards constitute an essential part of the Digital Silk Road. The paper explores state-driven technical standard-setting as an important aspect of emerging techno-nationalism. Until recently, technical standard-setting predominantly took place in the private sector. However, nation states are increasingly playing an active role in promoting home-grown technical standards. The paper focuses on the Chinese government as an example of this new development in standard-setting and describes how the Belt and Road Initiative, including the Digital Silk Road, are used to promote technical standards rooted in China. Using the obsolescing bargaining model as an analytical framework, the paper discusses the implications of a surge of China-specific technical standard-setting for European firms and how this may impinge on their market and non-market strategies.