US-China Subsea Cable Rivalry Intensifies: Control Over Critical Infrastructure
The strategic competition between the US and China is increasingly focused on submarine cables, which carry approximately 99% of intercontinental data traffic.
Key Developments:
US Actions: The FCC has mandated licenses for operators of submarine line terminal equipment, effectively barring Chinese firms from supplying equipment or services for networks connecting to the US. The US also plans to spend US$175.8 million to replace ageing cables in the Caribbean and Central America to block Chinese involvement.
China's Response: Beijing accused Washington of "politicising" global undersea cable networks. China Mobile recently activated the Southeast Asia-Hainan-Hong Kong (SEA-H2X) submarine cable system, stretching 5,746 km to connect China to the Philippines, Thailand, and Singapore.
Global Concerns: 17 Asian and European nations agreed at the Shangri-La Dialogue to adopt joint defence strategies for critical maritime infrastructure.
Xu Tianchen, senior economist at the Economist Intelligence Unit, commented: "The AI boom increases the importance of subsea cables by making reliable, high-capacity global connectivity more critical. Earlier US-China technology competition focused on products such as semiconductors and AI models; now the focus is increasingly shifting towards who controls the physical and digital foundations that allow these technologies to operate".
