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6 December 2019

Russia and China's High-Tech Bet

By Sintia Radu 

A Huawei engineer displays parts in the research and development area of the Bantian campus in Shenzhen, China. The ban imposed by the United States on Chinese mobile giant Huawei has increased cooperation between Russia and China. The company has centers in Moscow, St. Petersburg and Kazan, Novosibirsk and Nizhny Novgorod.

AS THE United States increases its geopolitical and economic pressure on China and Russia, the two countries are expanding not just their military cooperation but increasing their economic ties, highlighted by a stronger high-tech partnership spanning telecommunications, artificial intelligence, biotechnology and the digital economy, new research shows.

This increased collaboration – which includes efforts to improve censorship and surveillance techniques, create new media distribution channels and promote cyber strategies abroad – will pose new challenges for Western countries, say the authors of a report produced by the Australian Strategic Policy Institute, or ASPI, an independent think tank in Canberra, Australia.


"Such partnerships show that Beijing and Moscow recognize the potential synergies of joining forces in the development of these dual-use technologies, which possess clear military and commercial significance," the authors say. The report was put together by ASPI's International Cyber Policy Centre, which researches defense, security and strategic policy choices.

Historically, the Chinese and the Russians began working together at the beginning of the Cold War, with the Soviet Union providing China with equipment, technology and expertise, and helping it develop its own industrial, scientific and technical capabilities.

Today, the Sino-Russian relationship includes more dialogue and exchanges of information, as well as increased academic cooperation and the development of joint industrial science and technology parks, according to ASPI. In addition, Russian President Vladimir Putin said Russia would help the Chinese build their own missile early-warning system – a technology that only Russia and the U.S. have successfully implemented so far.

"China and Russia are really seeking to deepen and elevate their alliance," says Elsa Kania, co-author of the ASPI report and and an adjunct senior fellow with the Technology and National Security Program at the Center for a New American Security.

Among the areas where the Russia-China partnership is focused:

Next-generation telecommunications: The ban imposed by the United States on Chinese mobile giant Huawei has increased cooperation between Russia and China in this area, say the authors of the ASPI report. Huawei is expanding its presence in Russia, focusing on attracting STEM talent from Russian academia. Huawei has centers in Moscow, St. Petersburg, Kazan, Novosibirsk and Nizhny Novgorod. The Chinese also have announced they will increase fourfold their research and development staff in Russia.

Big data, robotics and artificial intelligence: There is an increased push for more cooperation in data transfer, AI and smart-city technologies. Russia has high-tech capabilities in research and development in this sector, but a small global market share. China, one of the world's largest markets, leads in AI projects, such as connected vehicles and facial and audio recognition technologies. Russia, on the other hand, is strong in industrial automation, defense and security applications, and surveillance.

Biotechnology: Among recent developments, a Russian holding company, a Chinese life-science company and a joint Russian-Chinese investment fund in 2018 created the largest innovative biotechnology laboratory in Russia. The center focuses on genetic and molecular research.

New media and communications: The two countries are examining ways to collaborate in new media, internet governance and propaganda, say the authors of the ASPI report. The cooperation will look at both technology and digital policy.

The digital economy: Both the Chinese and the Russians see tremendous business opportunities in each other's economies. According to ASPI, China's tech giants are looking at expanding into what is now Europe's largest internet market.

The partnership will continue to expand, says ASPI, with China taking advantage of Russian expertise and Russia making use of China's high-tech capabilities. This could become a greater challenge to the West, Kania says.

"I see the potential for threat, insofar as U.S. national security strategy characterized China and Russia as strategic competitors, particularly when it comes to the development in technology and emerging military capabilities," Kania says.

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