U.S. and China Vie for Dominance in Underwater Fiber-Optic Infrastructure

The ongoing battle for fiber-optic supremacy between the U.S. and China has significant implications for global internet infrastructure, highlighting both economic and security concerns. Over 95% of intercontinental data, valued at trillions of dollars daily, is transmitted through more than 500 underwater cables. These fiber-optic cables are essential for everything from emails to military communications. While companies from the U.S., Europe, and Japan have historically dominated this space, China has rapidly increased its presence since 2008, driven by government-backed investments in companies like Huawei Marine Networks. The U.S. has raised espionage concerns over Chinese involvement, leading to policies aimed at limiting China’s role in critical internet infrastructure and influencing global decisions on cable construction and maintenance.

• More than 95% of intercontinental data travels through over 500 underwater fiber-optic cables.
• The U.S. and China are engaged in a strategic competition over the control and security of these cables.
• China’s entry into the submarine cable industry was marked by the establishment of Huawei Marine Networks in 2008.
• The Peace Cable, a project by Huawei Marine, exemplifies China’s ambitious undersea cable projects, linking Asia, Africa, and Europe.
• The U.S. has expressed concerns over potential Chinese espionage through these cables, leading to policies excluding Chinese companies from U.S. internet infrastructure.
• A direct link between Los Angeles and Hong Kong was canceled due to U.S. security concerns.
• The White House facilitated a $600 million deal for American company SubCom, excluding Chinese company HMN Tech.
• Despite U.S. efforts to limit Chinese influence, China continues to expand its capabilities in cable building and repair.
• Geopolitical competition affects the business of building and maintaining these cables, with national governments increasingly intervening.

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