Divergent Digital Paths: A Comparative Study of Regulatory Frameworks and Participation in the Digital Silk Road between China and Nepal

Abstract

This article compares the digital regulatory systems and strategic responsibilities of China and Nepal in light of the Digital Silk Road (DSR) initiative. Nepal’s regulatory ecosystem remains fragmented and capacity-constrained, driven by development priorities and digital inclusion goals, while China, the architect of the DSR, adopts a state-led, centralized model motivated by cyber sovereignty, data localization, and global technological influence. Some of the laws, including the Cybersecurity Law, the Personal Information Protection Law, and the Data Security Law, have firmly established China’s digital governance and positioned technology as a tool for ideological control and geopolitical influence. Nepal’s legal system, on the other hand, while ambitious, lacks consistency and enforcement authority. Its legal system is based on the Digital Nepal Framework, the Electronic Transaction Act (2006), and the Privacy Act (2018). While Nepal engages as a pragmatic party seeking connectivity, economic development, and geopolitical balance, this study highlights China’s intentional export of digital infrastructure, standards, and surveillance technologies through the DSR. China’s engagement is expansionary and strategic, while Nepal's is demand-based and cautious. The findings highlight the broader geopolitical and normative implications of the DSR, demonstrating how different national agendas, governance frameworks, and regional power dynamics affect not only technology but also digital connectivity.