Abstract:  This article employs security dilemma theory to probe the geopolitical implications of state intervention in the digital realm. Its central argument is that with cross-border data flows being conducive to subversive actions, governments have grown wary of rival states leveraging control over data flows to advance strategic objectives. Therefore, when a government tightens its domestic regulation over data flows, its actions could trigger a spiral of suspicions and countermeasures with other states. Such a security dilemma fosters the technology rivalry between China and the United States. As Beijing became sensitive to unrestricted flows of information and data, it set out to exert tighter control over data flows within and across Chinese borders. But Beijing’s move aggravated US perceptions of subversive threats, prompting Washington to try to drive Chinese entities out of the US-centric technology ecosystem. Not surprisingly, Washington’s actions signaled hostile intent to China, which in turn decided to build alternative digital infrastructures. Given that state intervention in the digital realm could exacerbate great power rivalry, Web 3.0 will likely perpetuate security dilemma dynamics by shifting the battlefield from corporate platforms to protocol layers, from data ownership to infrastructure sovereignty.

Keywords:  data flows; digital infrastructure; security dilemmas; subversion; US–China relations

Published:   5 November 2025

Issue:   Vol 13 (2025): Technology and Governance in the Age of Web 3.0 (In Progress)