The US-China tech war is heating up over undersea internet cables. Chinese state-owned telcos are developing a $500 million undersea fiber-optic cable that would link Asia, the Middle East and Europe to rival a similar US-backed project, sources say
China's three main carriers – China Telecommunications Corporation , China Mobile Limited and China United Network Communications Group Co Ltd – are mapping out one of the world’s most advanced and far-reaching subsea cable networks, according to the four people, who have direct knowledge of the plan.
China Mobile, China Telecom, China Unicom, HMN Tech, Hengtong and China’s Foreign Ministry did not respond to requests for comment.that revealed how the U.S. government, concerned about Beijing eavesdropping on internet data, has successfully thwarted a number of Chinese undersea cable projects abroad over the past four years.
The consortium on the SeaMeWe-6 cable – which originally had included China Mobile, China Telecom, China Unicom and telecom carriers from several other nations – initially picked HMN Tech to build that cable. But a successful U.S. government pressure campaign flipped the contract to SubCom last year, Reuters reported in March.
The Chinese companies have also held talks with Singapore Telecommunications Limited, a state-controlled firm commonly known as Singtel, while other countries in Asia, Africa and the Middle East are being approached to join the consortium as well, the people involved said. The cable would give China strategic gains in its tussle with the United States, one of the people involved in the deal told Reuters.
Countries could also be forced to choose between using Chinese-approved internet equipment or U.S.-backed networks, entrenching divisions across the world and making tools that fuel the global economy, like online banking and global-positioning satellite systems, slower and less reliable, said Timothy Heath, a defense researcher at the RAND Corporation, a U.S.-based think tank.
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