Recommended Action for Continued U.S. Leadership on Global Cyber and Emerging Technologies Issues, Specifically U.S.-China 5G Competition
This memo was an academic exercise and is in no way affiliated with the Department of State
April 6, 2021
SENSITIVE BUT UNCLASSIFIED
ACTION MEMO FOR THE SECRETARY
FROM: EB – Ashley Fox, Leslie Conner Warren
SUBJECT: (SBU) Recommended Action for Continued U.S. Leadership on Global Cyber and Emerging Technologies Issues, Specifically U.S.-China 5G Competition
Recommendation(s)
(SBU) That you take a comprehensive 3-step approach to support U.S. leadership in global cyber and digital diplomacy issues:
Build out Department of State capacity and expertise in developing international norms in cyberspace through non-military tools of state power
Continuing the creation of the Bureau of Cyberspace Security and Emerging Technologies
Increase expertise within State by recruiting top external talent and providing training to existing staff
Strengthen existing relationships with Trans-Atlantic and other allies on cybersecurity and digital policy
Capitalize on the European Union’s position as a policy leader in this space
Maximize deterrence and coalition-building through the Five Eyes and NATO
Lead efforts to establish greater consensus on pertinent cyber and digital issues
Increase innovation for U.S. 5G deployment, applications, and software through visas and cultural exchange programming
Expand research and work visa eligibility for technical experts
Establish a STEM leadership exchange fellowship for cybersecurity and emerging technology leaders
Background
(SBU) Over the last few years, the United States has been embroiled in fierce competition with China over the deployment of fifth-generation (5G) wireless networks. As you may know, 5G telecommunications present critical trade and security issues within U.S. strategy. Transitioning networks to 5G requires significant investment in infrastructure but also promises to unlock immense economic growth, both domestically and abroad. The leader in 5G deployment will undoubtedly take precedent not only in the global supply chain but also in setting the standard for those who follow. However, the technical aspects of 5G change national and international security dynamics, particularly as they relate to U.S. cyber defense.
(SBU) Adopting 5G requires cell tower retro-fitting, as well as the installation of new smaller signal towers that must have close physical proximity, but will in turn handle exponentially higher data flows than current infrastructure. The higher data capacity of 5G is the key to increasing economic activity (as more devices can connect and communicate) but also contribute to higher security risks by expanding potential targets and increasing the severity of hacks and attacks.
(SBU) The People’s Republic of China, through equipment manufacturer Huawei and supplier ZTE, has financially invested at tremendous levels to secure its place as a market leader in global 5G proliferation. Current regulation in China permits the Chinese government to access data gathered and stored by these private sector firms. Under guidance from Secretary Pompeo, the previous administration identified Huawei as a significant security risk to the U.S. marketplace and consumers, and potentially government information. The use of the company’s equipment was banned on all U.S. 5G infrastructure. Allied nations were asked to adopt similar measures. To date, many including the United Kingdom, Australia, France, and Germany have either outright banned Huawei technology or have adopted similarly restrictive policies. Likewise, China is using their own geopolitical and economic influence to persuade countries to use or continue using Huawei equipment in telecommunications.
(SBU) The Department of State is uniquely positioned to champion U.S. diplomatic strategy on 5G abroad. While U.S. cybersecurity strategy has primarily operated within the domain of defense and national security, the global nature of cyber issues, particularly as they relate to economic and trade competition, calls for a nuanced non-military approach that incorporates interagency collaboration, international norm-setting, continued collaboration with Trans-Atlantic partners, and innovation. However, leadership in this space will require significant investment in the Department’s capacity and expertise.
(SBU) After operating under diminished capacity during the previous administration due to the consolidation of the Office of the Coordinator for Cyber Issues into the Bureau of Economic and Business Affairs, the Department has an opportunity to expand diplomatic engagement and coordination through the creation of the Bureau of Cyberspace Security and Emerging Technologies (CSET). Foreign Service Officers currently working on these issues, including 5G competition, have been facing significant difficulties in coordinating responses to growing cyber threats. As recommended by the Cyberspace Solarium Commission in 2020, by taking a more proactive role in shaping cybersecurity deterrence, the Department could lead efforts to develop and reinforce international norms in cyberspace through non-military tools of state power. As the world becomes more reliant on technology, it is imperative that the U.S. maximizes deterrence and coalition-building through its existing bilateral and multilateral relationships, such as the Five Eyes and NATO, and by furthering innovation in the cyberspace and emerging technologies sphere.