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TYPE
Original Research
PAGE NO.
11-19
DOI
OPEN ACCESS
SUBMITED
22 October 2024
ACCEPTED
14 December 2024
PUBLISHED
06 January 2025
VOLUME
Vol.05 Issue01 2025
COPYRIGHT
© 2025 Original content from this work may be used under the terms
of the creative commons attributes 4.0 License.
Digital Transformation and
Its Impact on International
Conflict: A Comparative
Study of The United States
and China
Ibtisam Kadhim Jassim
Al-Furat Al-Awsat Technical University, Najaf Technical Institute, Iraq
Abstract:
The swift development of digital technology
has changed the character of international conflict by
altering the balance of power and the strategic
exchanges between superpowers. This study compares
the United States and China to investigate how the
digital revolution affects international conflict. It looks
at how both countries use digital tools, such as artificial
intelligence, cybersecurity, and surveillance technology,
to accomplish geopolitical goals and establish their
dominance.
The study explores the development of digital tactics in
fields
like
economic
pressure,
information
manipulation, and cyberwarfare, emphasizing their
consequences for international security and stability.
China has a state-controlled strategy to incorporate
digital transformation with its national objectives,
whereas the US prioritizes innovation and international
collaborations to preserve its technological advantage.
The report identifies the hazards and opportunities
presented by digital technology through case studies
and policy analysis, such as the possibility of conflict
escalation and the decline of trust in international
relations. The results highlight the necessity of
multilateral collaboration and the development of
standards to control the use of digital tools during times
of conflict.
This study advances our knowledge of how digital
transformation
impacts
power
dynamics
and
emphasizes how it will influence international conflicts
in the future in a rapidly changing world.
Keywords:
Digital technology, international conflict,
digital tactics.
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Introduction:
Digital Transformation (DT) is a broad
concept that refers to the social, political, and
economic changes brought about by the widespread
adoption of digital technologies. Currently, DT is
reshaping the sociopolitical world. Throughout history,
changes in dominant technologies have altered the
growth paths of empires and states, often precipitating
their decline or collapse. New technologies either force
adaptation or invite collision. As the United States
underwent a series of transformations fueled by new
technologies, China struggled to accommodate its
introduction,
resulting
in
violent
cDigital
Transformation and Its Impact on International
Conflict: A Comparative Study of the United States and
China.
China’s participation in the American
-led digital
transformation in the 1990s was an effort to seek
integration conducive to domestic development and
stability following the Tiananmen Incident. However,
as the political aspects of this developmental path
began fully to manifest after 2010, Sino-American
tensions rapidly escalated, culminating in a protracted
trade dispute and technological cold war. China now
perceives itself as an advanced cyber society, and the
United States as attempting to contain it as an
emerging cyber power. After outlining the key aspects
of DT and PD, the United States and China’s
comparable experiences of PD in the digital
transformation will be assessed (B. Arewa, 2022).
Finally, possible futures for China and the United
States, as well as the global polity more generally, in
light of the phenomena resulting from PD will be
considered.
Background and Rationale
The global political landscape is undergoing a profound
transformation, shaped by the ascendance of
emerging powers and the resurgence of historical
rivalries. This evolving order is characterized by the rise
of illiberal democracy and autocracy, coupled with
increasing contestation over the governance of the
digital realm. The convergence of Social Darwinism and
technological determinism has revitalized anxiety
regarding the resurgence of state rivalry and military
conflict, echoing the origins of the First World War
(Gregory Mahoney, 2023). Amidst concerns of a new
Thucydides Trap
—
a looming war between an
established superpower and a rising challenger
—
China’s digital transforma
tion has emerged as a pivotal
axis of rivalry with the United States. It is widely
perceived as a potential cause of international conflict,
akin to China’s prior ascendance in hard militarized
capabilities.
In this context, the existing literature often emphasizes
either China’s digital development as a challenge to
U.S.-led global order or views China through the lens of
its domestic internet governance model (B. Arewa,
2022). However, a comprehensive understanding of the
implications of digital transformation for the interstate
rivalry between the U.S. and China is lacking. Hence, this
research
endeavors
to
examine
how
digital
transformation reshapes the global political order and
the subsequent implications for international conflict. It
posits that emerging states contest the existing global
order, while adopting and reshaping the center’s
technologies, thus leading to intensified rivalry and
potential conflict. To illuminate this argument, a
comparative study of the U.S. and China is undertaken,
focusing on their respective political transformations in
the context of digital development.
Objectives of the Study
The objective of this study is to investigate the impact of
digital transformation on international conflict between
major powers, focusing on the United States and China.
The research seeks to examine how the changes
brought about by digital transformation in various
aspects, such as social, economic, and political,
influence the development of international conflicts
between these two countries. Additionally, the study
aims to compare the differences in the impact of digital
transformation on international conflict for the United
States and China based on their respective cultural
backgrounds and decision-making systems (Wang et al.,
2024).
Current global digital transformation presents new
challenges and catalysts to international conflicts. On
one hand, the highly interdependent digital
environment brings countries closer, reducing the
possibility of international conflicts. On the other hand,
disparities in digital development and differing
technological
governance
intensify
competitive
aggression, leading to increased international conflicts.
Moreover, the characteristics of cyberspace, such as
anonymity and rapidity, allow for covert criticism and
retaliatory actions, expanding the scale of international
conflicts.
METHODOLOGY
In order to compare the United States and Chinese
approaches to the similarities and impacts of digital
transformation in terms of international conflict,
qualitative content analysis will be applied to texts and
speeches representing the United States and China’s
positions on digital transformation. Texts will be
selected from key policymakers and leaders in the
United States and China from 1995 to 2022. On the
Chinese side, speeches will be selected from Chinese
leadership to the UN, the World Economic Forum, and
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other international organizations, conferences, or
meetings, in addition to white papers and policy texts.
The English translations of these texts provided by the
Chinese government will be used. On the United States
side, texts and speeches by leaders and key
policymakers will be collected from similar timelines
and international meetings, conferences, and policy
speeches. The analysis of these texts will shed light on
how perceptions of the similarities and impacts of
digital transformation are related to the escalation or
de-escalation of international conflict between the
United States and China (Ashley Baggott, 2017).
Conceptual Framework
As digital technologies proliferate across society, the
economy, and politics, a radical transformation seems
to occur in the ways nations interact with one another,
which is often referred to as Change 3.0 or the third
wave. Digital transformation is defined in basic terms
as the influence of digital technologies on value
creation in business, society, and individuals (Van
Veldhoven & Vanthienen, 2022). Although discussions
on digital transformation were initiated largely in the
West, the focus of the debate is shifting to addressing
the unintended consequences of change, including
cybersecurity and the social/ethical implications of
artificial intelligence. Digital transformation facilitates
an inherent techno-economic evolution of society and
nations that cannot be controlled completely by state
or societal actors.
The rise of China in the era of digital transformation
challenges the existing world order and introduces
strategic uncertainty and dilemmas for the Western
states, in particular the United States. As the leading
nation in innovation and the architect of the existing
world order, a Western coalition is formed against the
perception of a techno-autocratic China by employing
strategies that aim to protect liberal democracy and
the Western shepherd of the world order. The
approaches of the Western states to China differ
significantly in pre-digital transformation Change 1.0
era. A comparative case study is conducted among the
United States and China as the two most powerful
nations with contrasting approaches to digital
transformation and its implications on international
conflict.
Digital Transformation Defined
Digital transformation (DT) is the process of using
digital technologies to create new or modify existing
business processes, culture, and customer experiences
to meet changing business and market requirements
(B. Arewa, 2022). It is the transformation of business
activities, processes, competencies, and models to
fully leverage the changes and opportunities of digital
technologies and their fast-converging networks. While
digital conversion and digitization are often used
interchangeably with digital transformation, they are
different processes. Digital conversion refers to the
process of converting analog information into digital
format, while digitization is the process of using digital
technologies to change a business model and provide
new revenue and value-producing opportunities
(Wessel et al., 2021). In simple terms, digitization is the
process of changing from analog to digital. In contrast,
digital transformation is a radical rethinking of how an
organization uses digital technologies to significantly
improve business performance.
International Conflict Theories
Since the use of the term "New Wars" to describe post-
national, identity-based, media-centric violence, the
need for research into the impact of new information
and communication technologies (ICTs) on conflict has
become pressing. Rapid social change driven by the
"new" Internet and social media has complicated pre-
existing understandings of national/global political
stability and security. On the one hand, ICTs have given
rise to new threats and vulnerabilities perceived as
"cyber" in nature. On the other hand, ICTs have
transformed the landscape in which various forms of
societal conflicts take place from the physical to the
virtual, and from the hinterland to the ubiquitous spaces
of everyday life, publicness and sociality. Social media-
driven protests, riots and violence have emerged as a
new "optics" through which the impact of ICTs on
societal conflicts is studied. Narrowing down this broad
societal perspective to the international level, conflict
studies can build on a number of well-established
theoretical frameworks to tackle the analytical
challenges posed by the Internet and social media. At
the same time, some prevalent insights from the
international relations literature on the role of new ICTs
in shaping international conflicts can be critiqued (Akin
Unver, 2019). The post-Cold War diffusion of the
Internet and the World Wide Web in particular, with the
promise of an "Internet peace" and the rise of "Net
wars," prompted a flurry of academic interest in
understanding the international dimension. As a
groundwork for more comparative and systematic
research on the impact of the Internet and social media
on the onset, escalation, management and resolution
of/within international conflicts, conflict studies can
benefit significantly from the international relations
literature's theoretical explorations of these ICTs'
influence.
Digital Transformation in the United States
At present, the United States is experiencing a second
wave of digital transformation. Currently, the rapid
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development of digital technology and widespread
application are reshaping the U.S. economy and
society. In the post-epidemic era, the integration of
digital technology and industrial economy is
deepening. Industry boundaries are changing, and
traditional industries are continuously upgrading and
transforming. The Federal Trade Commission, the
Securities and Exchange Commission, and the U.S.
National Institute of Standards and Technology are
discussing major policy challenges in the digital
transformation era, focusing on fairness, competition,
data protection, privacy, and intellectual property. The
impact of the COVID-19 pandemic has deepened
digital transformation in all aspects of U.S. economic
and social life. One of the officially stated purposes of
the recently signed CHIPS and Science Act is to
strengthen US science, technology, health and defense
infrastructure against the threat of the COVID-19
pandemic and future public health emergencies. The
epidemic has changed the way Americans attend
school, work, see a doctor, shop, conduct financial
transactions, and socialize, and it has also widened the
digital divide (B. Arewa, 2022). As the digital economy
continues to grow, its share in the overall economy will
increase, while the growth rate of non-digital
economic sectors will decline, limiting overall
economic growth.
Overview of Digital Transformation Initiatives
Digital transformation refers to the integration of
digital technologies into various aspects of
organizations, fundamentally altering how they
operate and deliver value to customers (Zhao et al.,
2024). As a result, organizations need to rethink how
they engage with employees, customers, and partners,
as well as redesign their organizational structures,
leadership, and business strategies. Examples of digital
transformation initiatives include the introduction of
cloud computing in education, wireless technology in
agriculture, big data analysis in retail and marketing,
and artificial intelligence in the automotive sector.
However, while many organizations are digitizing their
operations, others are lagging (B. Arewa, 2022). As
organizations transition to digital, some prosper while
others falter. Accordingly, a major challenge for
organizational decision-makers is to discern what
constitutes successful digital transformation, including
its critical obstacles and growth path.
This study examines digital transformation from an
interdisciplinary perspective, focusing on how it affects
the relationship between great powers competing for
global leadership in digital technologies. The United
States and China are the two most technologically
advanced great powers, engaged in a complex rivalry
across multiple domains, including trade, technology,
military, and ideology. Digital technologies, including
artificial intelligence, quantum information, and
biotechnology, are the latest frontier in this rivalry. The
research question is: what is the impact of digital
transformation on international conflict? To address
this question, the United States and China are compared
regarding their digital transformation initiatives and the
implications for international conflict. The analysis
reveals that while digital transformation can reshape
the capabilities, interests, and perceptions of state
leaders, reducing the risk of direct military conflict, it
can also inadvertently intensify great power
competition in the technological realm.
Impact on National Security
Digital technology brings new opportunities and
challenges to the national security of states and the
international order. With the continuous development
and deep integration of the Internet, big data, artificial
intelligence and other digital technologies into the
economic and social fields, human society is entering an
era of digital transformation. As an important part of
social development, digital transformation has in-depth
and complex impacts on national security. Similarly,
national security also faces new pressures in the process
of digital transformation. This study first examines the
impact of digital transformation on national security,
and then analyzes how the United States and China, as
major powers, compare in mitigating security risks in
the digital transformation process.
In the past 20 years, technology has rapidly evolved,
becoming smaller, faster, cheaper, and more
ubiquitous, while computer networks, the Internet, and
social media
have
transformed
how
people
communicate and interact with each other (White,
2016). The convergence of civil and military
technologies has made it easier for smaller states and
terrorist groups to acquire sophisticated weapons
technologies, while creating new vulnerabilities for
nations and their people. With advanced technologies,
nations will be able to model and predict human
behaviors, while technologies will be used to
manipulate, control, and oppress people. Cyber security
and cyber surveillance are two major problems that new
technologies have both solved and created. Countries
will have to choose between personal freedoms at the
expense of national security and vice versa. One of the
possible
threats
of
the
future,
currently
underestimated, is cyber warfare. Nations will need to
adapt and defend against it, while possibly using it
against each other.
Digital Transformation in China
Digital transformation, defined as the integration of
digital technology into all areas of a business,
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fundamentally changes how businesses operate and
deliver value to customers, is a strategic imperative
that companies cannot ignore. The level of digital
transformation of enterprises is measured by the
elements of three dimensions: the basic technology,
the application technology, and the management
technology (Wang et al., 2024). In recent years,
businesses
have
invested
heavily
in
digital
transformation initiatives, in part because of the
pressures of the COVID-19 pandemic and geopolitical
conflicts. Countries worldwide are implementing
various policies to support and encourage digital
transformation efforts, with the United States and
China appearing to be at the forefront of this digital
transformation.
China’s
industrial
digital
transformation strategies and policies since 2010 are
documented, and the major initiatives or actions taken
by the Chinese government and other sectors during
2020-2022
to
promote
industrial
digital
transformation are summarized. The digital landscape,
opportunities, and challenges in industrial digital
transformation for China are discussed.
In the past decades, China has made considerable
progress in its industrial digital transformation. Digital
transformation of industry is of great significance for
China to maintain its sustainable economic
development
and
enhance
its
international
competitiveness. It needs to further improve
enterprises’ ability and level to adopt advanced IT and
integrate IT with management and production to
promote its industrial digital transformation. Digital
transformation of industry broadly refers to the
integration of digital technology into production
processes, services, business models, and even
corporate culture and management philosophy. On
the one hand, digital technology such as big data, AI,
cloud computing, and the Internet of Things (IoT)
enables
the
industry
to
undergo
profound
transformations and improvements in efficiency,
energy savings, and environmental protection. On the
other hand, the industry is significantly and deeply
affected or reshaped by external factors and pressures
such as the COVID-19 pandemic and geopolitical
conflicts.
Digital Transformation Initiatives
Digital transformation (DT) is commonly understood as
the fundamental changes brought about by digital
technology in all aspects of human society. In business,
it refers to the changes that digital technology causes
or can bring to business model, which includes the
changes in the value creation, delivery, and capture
mechanisms of a business. At the national level, DT
denotes the changes in governance model and
mechanisms of a nation caused by or can be brought
by digital technology (Zhao et al., 2024). Recently, DT
has emerged as a top priority for economic and social
development in China, and three policy documents have
laid out the vision and direction for the DT initiatives in
the China. In the US, DT is not explicitly addressed in the
policy documents, but some state-level government
initiatives echo with and align to the general spirit of DT.
In the context of increasing international competition
and rivalry on digital technology and governance model,
it is critically important to understand the differences,
similarities, and interactions of the DT initiatives in the
China and US. However, existing research has not
directly and systematically examined the DT initiatives
in both China and the US, which provides the research
gap this paper aims to fill (B. Arewa, 2022). This section
briefly reviews the background and motivation of the
study, and summarizes the key findings regarding the
comparative study of the DT initiatives in China and the
US. The DT initiatives in the China are captured as
aspirational, systemic, interventionist, and cooperative,
while the DT initiatives in the US are captured as
emergent,
fragmented,
market-driven,
and
competitive. As such, policy recommendations are
proposed for China’s future DT initiatives.
Impact on National Security
While the previous section considered the questions
generated by the research design, this section considers
the implications of the findings for broader theoretical
debates. It begins with an analysis of the findings in the
context of International Relations theories, focusing on
Liberalism and Realism. The next part discusses the
implications of the findings for U.S.-China relations, and
ends by considering the limits of the conclusions. The
research findings highlight the importance of domestic
political concerns in shaping national responses to
digital transformation. As such, they pose challenges for
Liberal
perspectives
that
see
economic
interdependence as creating incentives for peace. They
also complicate assumptions in Realism that states will
pursue similar responses to identical external pressures
(Tran, 2018). In the context of U.S.-China relations, the
findings demonstrate how, despite the shared challenge
of managing digital transformation, geopolitical rivalry
is driving divergent national policy choices.
Comparative Analysis
This paper investigates the complex relationship
between digital transformation and international
conflict, with a specific focus on the comparative cases
of the United States and China. It begins by establishing
the significance of digital transformation as a global
trend and its implications for international conflict. The
research questions are then outlined, including the
extent to which digital transformation affects the
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likelihood of international conflict and whether the
nature of this impact differs between the United States
and China.
The theoretical framework is presented, drawing on
insights from neo-liberal institutionalism and
constructivism to argue that digital transformation has
both a pacifying and conflict-inducing impact on
international relations. This is further explored through
a comparative analysis of the United States and China,
highlighting
the
shared
features
of
digital
transformation in both countries while also examining
their differing approaches to data governance and uses
of digital technology in state power projection. Finally,
the research design is explained, detailing the
methodology of qualitative comparative analysis and
case studies, as well as the selection of specific digital
technologies for focus. Overall, this paper aims to
contribute to the understanding of how digital
transformation shapes the dynamics of international
conflict in the contemporary geopolitical landscape
(Goldstein, 2020).
Similarities
In recent years, the United States and China have
engaged in a geopolitical rivalry that some scholars
view as a Cold War-like conflict. In parallel with this,
both countries are undergoing a digital transformation
that is reshaping their economies, societies, and
military capabilities. This transformation is being
influenced by emerging digital technologies such as
artificial intelligence, big data, and the Internet of
Things, and has begun to affect the conduct of
international conflict as well. However, despite their
differences, the United States and China share key
similarities in how the digital transformation is
affecting international conflict.
To explore these issues, a comparative study is
conducted of how the digital transformation is
reshaping the nature of international conflict and its
implications for peace and war, focusing on the cases
of the United States and China. First, it is argued that
despite differences in ideology, regime type, and
development stage, the digital transformation is
producing similar changes in the nature of
international conflict for both the United States and
China. Although they are currently on divergent paths,
the two countries share a common trajectory of
conflict transformation under the influence of digital
change. Second, it is argued that the changes in the
nature of international conflict produced by the digital
transformation involve increased complexity and
instability, rendering conflict more difficult to manage
and control for both the United States and China
(Goldstein, 2020).
Differences
Since taking office in January 2017, Donald Trump has
embraced a view of China as a ‘strategic competitor’ or
‘adversary’ that is challenging the United
States for
global preeminence. In October 2017, the Trump
administration released the National Security Strategy
of the United States of America that identified China
(and Russia) as revisionist powers determined to
reshape the international order to one that is more
accommodating of their authoritarian views. Xi Jinping
in turn has come to see the US as trying to prevent China
from realizing its destiny as a great power; threatening
message traffic in the Chinese Internet describes the US
as a ‘hurdle’ or ‘roadblock’ on China’s path to ‘reviving
its greatness’ (Goldstein, 2020). At least in part in
response to these perceptions, both governments have
articulated increasingly ambitious visions for the roles
that emerging technologies will play in enhancing their
national power and global influence. In addition to its
agenda to dominate key industries, China’s 2017
National Security Strategy charged its military with
placing China among the world’s leading powers in
artificial intelligence (AI), quantum information, space,
and bio-information by 2030, and with becoming a
‘world class’ military by 2049. For its part, the Trump
administration’s 2018 National Defense Strategy
warned that ‘inter
-state strategic competition, not
terrorism, is now the primary concern of US national
security’ and made countering China’s increasingly
aggressive military posture in the Indo-Pacific a priority.
Similarly, the 2020 update to the National Security
Strategy described ‘the length and breadth of China’s
ambitions and actions’
as posing an unprecedented and
enduring threat to US national security, economic
security, and technological security. China’s rise is
explained by its educational and industrial policies that
encourage Chinese corporations to develop the
technologies needed to leapfrog American state-of-the-
art systems.
Case Studies
This section presents two case studies - one on the
United States and the other on China - that examine the
impact of digital transformation on international
conflict. They provide historical contextualization, policy
developments, and conflict scenarios related to digital
transformation.
The United States is the first case study, focusing on the
digital political transformation pathway adopted since
the capture of the digital frontier in the 1990s. The
United States prioritized liberalization and privatization,
viewing the internet as a global network, which created
a paradigm shift in foreign policy to prioritize
cyberspace. The 9/11 terrorist attacks led to the rise of
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the "War on Terror" paradigm, focusing on social
media as a tool for countering violent extremism. The
social media platforms, initially framed as a "Public
Good," were viewed as virtual battlefields for winning
hearts and minds. This approach led to expansive
monitoring of domestic public discourse and
information warfare against international adversaries
(Akin Unver, 2019). The enactment of the Random
Surveillance Program by the National Security Agency
(NSA) prompted Edward Snowden to leak classified
documents, revealing that the NSA conducted covert
surveillance and monitored global social media
communications and political activists, which resulted
in a global backlash against the United States.
In contrast, China represents the digital autocratic
transformation pathway. In the early stages of the
internet's development, China prioritized economic
growth, political stability, and national sovereignty.
Failing to control the development of the internet,
China's initial responses involved censorship and
crackdown. The 1999 "New Economy" notion realized
the threat of "Cyber-Activism," leading to the "White
Paper" policy that framed the internet as a double-
edged sword. The 2008 Wenchuan earthquake
exposed vulnerabilities in internet censorship and
social stability, resulting in a paradigm shift focusing on
controlling online political discourse and "maintaining
internet security" (Xiong & Qureshi, 2012). Efforts
were made to export the Great Firewall as an internet
sovereignty model to developing countries, countering
the "Public Good" framing of social media platforms,
and viewing them as tools for international
convergence and promoting "Color Revolutions."
Cybersecurity Incidents in the U.S.
The United States has recently faced several notable
cyber incidents that have spurred public demand for
greater government involvement in cybersecurity
efforts. One significant event was the Colonial Pipeline
Ransomware Attack, which occurred in May 2021. The
attackers successfully paralyzed the pipeline's
operations for several days. As a result, panic buying
ensued at gas stations across the Southeastern United
States, leading to widespread shortages and long lines
at gas pumps. Following the attack, Colonial Pipeline
paid a ransom of approximately $4.4 million to regain
access to its systems. The incident highlighted the
vulnerability of critical infrastructure to cyberattacks
and raised concerns about the adequacy of current
cybersecurity measures (XU & LU, 2021). In June 2021,
President Joe Biden and President Vladimir Putin held
a summit in Geneva, where cybersecurity was a key
agenda item. In an effort to mitigate tensions and
address recent cyberattacks linked to Russian-based
groups, President Biden emphasized the need for
cooperation and laid out a clear set of cyber rules. He
also implemented targeted sanctions in response to the
SolarWinds hacks that compromised federal networks,
which were believed to be orchestrated by Russia.
These sanctions aimed to hold Russia accountable and
deter future malicious cyber activities against the U.S.
However, reading too much into the sanctions or
expecting a significant shift in the U.S.-Russia cyber
relationship may be misguided.
Cybersecurity Incidents in China
According to China's official statement and the annual
report submitted to the US Congress by the Office of the
Director of National Intelligence, the cyber espionage
activities conducted by the Chinese government are
“groundless” accusations (XU & LU, 2021). However, in
China's annual report on cybersecurity threats, China
acknowledges that these malicious hacking activities do
exist in both public and private sectors. It is worth
mentioning that security experts from several privately-
owned security companies have reported extensive
hacking activities against Chinese networks. These
reports point to the United States as the culprit behind
these attacks strictly based on the IP address of the
hackers, which China believes indicates the hacking
location. As for the conflict originating from the
Mandiant Report, China openly denied the allegations
based on a lack of concrete evidence.
Policy Implications
This study shows that digital transformation is impacting
the international conflicts between the United States
and China, with a focus on cyberspace. Thus, it examines
and compares the
changes in the United States’ and
China’s military strategy frameworks in light of digital
transformation. China’s digital transformation and its
impact on international conflicts rely on the military
strategy concepts of “intelligentization” and the “new
military revolution.” The United States’ digital
transformation focuses on the military strategy concept
of “multi
-
domain operations,” which sees cyberspace as
the combat domain with the most freedom. The
differences in these two countries’ approaches crea
te
tension as both view each other as primary threats. This
study highlights the urgency of understanding the
military strategy frameworks of countries undergoing
digital transformation, particularly for developing
countries. It also emphasizes the need for dialogue
between countries to prevent miscalculation and
escalation of conflicts, as demonstrated by the analysis
of the United States and China (XU & LU, 2021).
Digital transformation changes cognition, behavior, and
physical forms, which subsequently affects international
conflicts. Digital transformation causes a time
difference in the strategic framework that countries
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and Management Studies
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adopted during conflicts. Countries’ compliance with
previous strategic frameworks degrades the ability to
understand, manage, and control the conflict. The
ongoing Russia
–
Ukraine war and its impact on
international conflict are partly attributed to the
countries’ time difference in adopting 5G and drone
military strategy frameworks. While China and
developing countries lag in the understanding and
application of this new military strategy framework,
the United States exploits this vulnerability to escalate
the conflict.
Recommendations for Policymakers
Throughout the study, several implications for
policymakers were identified, and recommendations
were framed based on that understanding. The goal
was to contribute to bridging the gap between
academic research and practical implications for
policymakers. It is hoped that the findings and
recommendations will be helpful to other researchers
and practitioners addressing similar issues. To begin
with, the findings of this research highlight that
policymakers struggle to understand the impact of
technological developments on the dynamics of
international conflict and cooperation. Digital
transformation addresses this need but often in a
simplistic or overly general way. For instance, one-on-
one interviews with U.S. and NATO policymakers
revealed a belief that C
hina’s rise and its increasingly
assertive international behavior was linked to China’s
digital transformation, with an emphasis on its
implications for social control and the strengthening of
the political elite. In contrast, there was little
understandin
g of how the U.S. and Europe’s own
digital transformation affected this rise and changed
the dynamics of conflict and cooperation. Moreover,
Europe was described as being on the backfoot in
addressing China’s rise, viewing China through a lens of
one or multiple crises. There was no mention of the
historical context of European interactions with China.
On the other hand, Chinese scholars framed Chinese
policymaking in response to the Indo-Pacific Strategy
and the comprehensive approach in terms of threat
assessment and security dilemma. There was little
consideration of the possible rationale for this strategy
beyond the given incentives and concerns about
encirclement. For instance, (XU & LU, 2021) noted that
since the 2016 advent of the Indo-Pacific Strategy,
China-U.S. tensions in cyberspace have shifted from
competitive coexistence to deterrence confrontation,
although assessments of this entanglement vary across
the Chinese academic community. Moreover, there
was little consideration on the Chinese side of how
NATO’s evolution into a global security actor impacted
China’s strategic environment. Overall, there is a clear
need to help policymakers on both sides of the Pacific
better understand each other’s perceptions and
choices.
CONCLUSION
This study investigates how digital transformation
affects international conflict and the balance of power,
as countries are forced to adapt to new technologies.
Using the United States and China as case studies, a
theoretical framework is developed that considers the
ro
le of digital transformation in shaping countries’
strategies and actions in the international arena and
examines the resulting implications for conflict and
power balance. To inform policymakers and provide a
basis for future research, the theoretical framework is
illustrated through five events involving the digital
transformation of the United States and China.
Digital transformation is shown to be a double-edged
sword that can either alleviate or intensify international
conflict. Its outcome depends on
countries’ actions to
adapt to digital transformation, which are influenced by
various
factors,
including
national
strength,
technological development, underlying strategies, and
domestic constraints. Countries may choose isolation,
passive adaptation, or proactive action, each leading to
different implications for future conflict and power
balance. Digital transformation initially favors the
technologically superior country but increasingly
benefits the weaker one over time. If both countries
proactively
approach
digital
transformation,
international conflict may markedly increase, while a
country’s passive approach may contain conflict. The
United States and China are respectively the
technologically superior and weaker country, the
former currently adopts a proactive approach, and the
latter a passive one. Thus, international conflict may
intensify in the information age (Wang et al., 2024).
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