The Federal Communications Commission (FCC) of the United States is set to roll out a measure that will ban the use of Chinese technology or equipment to connect to undersea communication cables in the U.S.
As the telecommunications regulatory body of the U.S., the FCC is scheduled to vote on a new rule in August. The rule is aimed at ensuring that new communication cables connecting to the U.S. are not vulnerable to threats from Beijing and other adversaries, particularly targeting potential espionage activities by the Chinese Communist Party.
FCC Chairman Brendan Carr told the Financial Times, “In recent years, we have seen threats to undersea cable infrastructure from foreign adversaries such as China (the CCP). We are taking action to protect the ownership and access to U.S. undersea cables, ensuring they do not fall into the hands of foreign adversaries, while urging to address both network and physical threats.”
He pointed out that undersea cables carry 99% of global internet traffic. With the U.S. actively constructing data centers and infrastructure for artificial intelligence and next-generation technologies, the importance of undersea cables is becoming increasingly prominent.
“President Trump has long recognized that ‘economic security is national security,'” Carr said.
Carr and two other Democratic commissioners are expected to approve this new rule on August 7. The FCC has intensified its scrutiny on issues related to China and established a dedicated national security department focused on countering threats from Beijing.
The critical backdrop to advancing this new rule is that the U.S. telecommunications network continues to face large-scale cyber attacks from the CCP, such as the “Salt Typhoon” hacker incident. Due to the high cost of system replacements, the U.S. must be more cautious in addressing these threats.
After the implementation of the new rule, Chinese companies will not be able to obtain new FCC licenses, participate in the construction or operation of undersea cables connecting to the U.S., or lease cable capacity laid by other companies. It should be noted that the new rule only applies to future undersea cable licenses.
This move will directly impact Chinese telecom company Huawei and its subsidiary HMN Tech, the largest cable manufacturer in China. The U.S. accuses Huawei of conducting espionage on behalf of Beijing.
China Telecom, China Unicom, and China Mobile have previously held FCC licenses and owned or operated undersea cables connecting to the U.S.
An FCC official stated, “China (the CCP) and other foreign adversaries pose significant threats to undersea cables in terms of physical security, network security, and data access. Restricting foreign adversaries’ access to U.S. undersea cable infrastructure is necessary and reasonable.”
The official added that this measure would “presume to prohibit Huawei from obtaining undersea cable licenses and prohibit any undersea cable from using Huawei equipment.”
This provision is a measure introduced by the FCC based on the “United States Prioritization of Investments” memorandum issued by President Trump in January.
Craig Singleton, a China security expert at the Foundation for Defense of Democracies, said that out of concerns regarding China (the CCP) and other U.S. adversaries, the U.S. is scrutinizing more closely “who controls the digital arteries of the global economy.”
“In an era where hostile forces view critical infrastructure as strategic weapons, uncontrolled undersea cables would be a strategic misstep,” Singleton said. “This provision is a clear step toward decoupling in the most critical area – the infrastructure beneath the surface.”