First, the global economy faces a kind of “productivity paradox”, as the exponential increase in technological development is not accompanied by the commensurate rise of productivity. Technologically advanced solutions, like gaming, interactive advertising, on-line shopping etc., focus on consumption and entertainment rather than production. For the ASEAN states, this scenario leads to a serious crisis of values as it undermines the East Asian work ethics as a pivotal prerequisite for new economic success stories.

Second, the Fourth Industrial Revolution incentivizes the association to seriously revise its formats and initiatives of economic regionalism. The present regulatory frameworks of multilateral trade, be it the General Agreement on Tariffs and Trade (GATT), the General Agreement on Trade in Services (GATS) or the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS Agreement) were developed before the present digitalization of international trade. Accordingly, these frameworks do not grasp the present essence of digital products and services. This incentivizes the association to perform a double-edged task – to digitally support its multilateral economic initiatives and to upgrade their regulatory formats, both under serious time constraints.

Lastly, an increasingly worrying trend resulting from the on-going digital exchanges is a decrease of internal manageability in the Southeast Asian states. Among the noticeable developments, the so-called eco-chambers are noteworthy. The grass-root citizens subscribe to the media resources, including those that cover politicized issues on religion, ethno-separatism etc., which correspond to their preferences and ignore alternative sources of information42. Apart from spreading fake news, this allows politicians to manipulate the public opinion during the election campaigns, as well as to mobilize, should the need arise, large masses of people to anti-government protests. Even more significant aftereffect for ASEAN member states is the rise of terrorist activity in the digital sphere. In the Internet, terrorists may carry out their illegal activities without the risk of imprisonment while crypto-currency and blockchain technologies can be used for financing acts of terrorism. Moreover, in the Internet the dissemination of extremist literature is easy as this can be done quickly and in great numbers.

A relatively new but critically important development is the politicization of the dialogue between ASEAN and its partners, mainly China and the United States, in the digital sphere. As China’s and the US’ mega-strategies the Belt and Road Initiative and the Indo-Pacific region further evolve, their digital components come into conflict ASEAN’s interests.

China’s Digital Silk Road as part of the BRI is premised upon Beijing’s intention to set the standards of digital cooperation from both “hard” and “soft” infrastructure perspective. As China strengthens its positions in the international industrial cooperation, it expands the reach of its ICT solutions. A representative example is the railway that will connect Laos and China includes the ICT-services accounting for 3.67 million dollars43. Of equal, if not greater, importance is the supportive function of China’s digital operating systems for the Chinese companies which expand its activity abroad and, by using the Alibaba Cloud and the data centers in other countries, have very few operating costs. This means that ASEAN’s industrial sector will be naturally slipping into China’s rules of digital game.