Setting the rules on digital trade

The digital world economy is the fastest growing. Like other sectors, it has economies that contribute as producers, innovators, consumers and bystanders. International rules on digital trade  have been restricted to bilateral or plurilateral initiatives. An international consensus on the need for and content have eluded negotiators so far.

Anbound, a think tank, has pitched for being proactive in rulesetting in digital trade. Outlining the contours of what the digital trade economy has in store for the US, China, EU and India, it argues for a more proactive role for China to play in standard setting:

Like it or not, with the progress and popularization of digital technology, a highly digital world in on the horizon and we will face the problems of "digital survival", "digital development" and so on. Since there are insufficient rules in this new field, it is important to establish relevant rules. As a major emerging market, China needs to actively participate in the formulation of these rules in the digital era.

Final analysis conclusion:

The digital age has arrived, and China is an important participant in such an age where it needs to play an active role in the formulation of the rules of the game.

The digital economy is going to be the next battlefield. The signs of it are reflected in the digital services tax, issues of security around technology, data privacy as well as the need for global rules to address the new age economy. How economies will react to the calls and strains will determine how they stand to benefit from it.