In a significant escalation of the tech cold war, the U.S. Federal Communications Commission (FCC) voted unanimously today to effectively bar Chinese telecommunications equipment from being used in undersea cables landing in the United States. The move targets gear produced by companies like Huawei and ZTE, citing "unacceptable risks" to national security.
The 4-0 decision empowers the FCC to revoke existing authorizations and deny future applications for submarine cable licenses if they involve equipment from companies deemed national security threats, primarily those on the FCC's so-called "Covered List." This list already includes Huawei, ZTE, and several other Chinese tech giants.
Targeting the Internet's Backbone
Undersea cables are the critical, largely unseen infrastructure carrying over 99% of the world's intercontinental internet and telecommunications traffic. They connect continents and underpin the global digital economy. The U.S. government has long expressed concerns that Chinese equipment embedded in these vital lines could be used for espionage or sabotage by the Chinese government.
"Submarine cables form the backbone of our global communications network," stated FCC Chairwoman Jessica Rosenworcel following the vote. "Today’s action is a necessary step to protect that infrastructure from potential threats posed by foreign adversaries. We cannot allow companies beholden to authoritarian regimes to control or access the physical pathways carrying the world’s data."
Part of a Broader Crackdown
This decision is not isolated. It builds upon years of U.S. actions to restrict Chinese telecom and tech firms from critical infrastructure:
- 2019: Huawei placed on the FCC's Covered List, barred from federal subsidies.
- 2020: FCC designates Huawei and ZTE as national security threats.
- 2022: FCC bans approvals for new Huawei and ZTE equipment in U.S. telecom networks.
- 2023: FCC begins revoking existing authorizations for Chinese equipment in U.S. networks.
The focus on undersea cables represents a natural, albeit complex, extension of this policy into the international submarine cable consortiums that build and operate these multi-million-dollar projects. U.S. officials have actively lobbied allies to exclude Chinese firms from cable projects worldwide.
China Condemns "Economic Coercion"
China reacted swiftly and angrily. A spokesperson for the Ministry of Foreign Affairs denounced the move as "blatant economic coercion and technological bullying."
"This decision by the U.S. FCC, based entirely on groundless accusations and ideological prejudice, severely violates the principles of market economy and fair competition," the spokesperson stated. "It undermines the stability and security of global industrial and supply chains. China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies."
Industry Impact: Costs and Delays Loom
The ruling is expected to cause significant disruption and increased costs for the undersea cable industry. Many existing consortiums include Chinese partners or have utilized cost-effective Chinese equipment. Projects planned or under development involving Chinese components destined for U.S. landings will now need extensive redesigns or replacements, leading to delays and higher expenses.
"It's a massive headache," said an industry executive involved in a major trans-Pacific cable project, speaking on condition of anonymity. "Finding alternative suppliers, requalifying equipment, renegotiating contracts – this adds years and potentially hundreds of millions of dollars. The ripple effect on global connectivity could be substantial."
What Happens Next?
The FCC order takes effect 30 days after publication in the Federal Register. The Commission will now initiate reviews of existing licenses and scrutinize pending applications. Cable operators will be required to submit detailed plans for identifying, removing, and replacing any covered Chinese equipment.
Experts warn the decision could fragment the global internet infrastructure further. "This is another step towards a 'splinternet', where geopolitical blocs have increasingly separate digital infrastructures," commented Alan Mauldin, Research Director at telecoms research firm TeleGeography. "The challenge will be ensuring security without completely stifling the international cooperation essential for building and maintaining this critical global infrastructure."
The FCC's move underscores the deepening technological rift between the U.S. and China, with undersea cables – the literal lifelines of the internet – becoming the latest battleground in the struggle for digital supremacy and security. The full impact on global connectivity and future cable projects remains to be seen.
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