This PRIO Paper examines how the Philippines’ drive for digitalization intersects with its dependence on foreign technology and growing geopolitical pressures. Despite a rapidly expanding digital economy, the country continues to lag in infrastructure, skills and regulatory readiness, creating openings for large-scale external investment. China’s Digital Silk Road has become deeply embedded across Philippine telecommunications, data centres, fintech and public sector initiatives, offering needed capacity while amplifying security and sovereignty concerns.
Based on expert interviews and document analysis, the study shows how Chinese firms have gained significant influence through hardware provision, cloud services and informal technology transfers, even as public distrust of China persists. The findings highlight the structural vulnerabilities shaping Manila’s choices and the trade-offs involved in balancing economic needs with strategic alignment, regulatory reform and regional norms.
