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The Internet

How the US is Pushing China Out of the Internet's Plumbing (ft.com) 30

Experts say the subsea cable market is in danger of dividing into eastern and western blocs amid fears of espionage and geopolitical tensions. From a report: Nearly 1.4mn kilometres of metal-encased fibre criss-crosses the world's oceans, speeding internet traffic seamlessly around the globe. The supply and installation of these cables has been dominated by companies from France, the US and Japan. The Chinese government started successfully penetrating the global market, but consecutive US administrations have since managed to freeze China out of large swathes of it. This was ostensibly because of concerns of espionage and worries about what Beijing might do to disrupt strategic assets operated by Chinese companies in the event of a conflict. Despite being routinely blocked from international subsea cable projects involving US investment, Chinese companies have adapted by building international cables for China and many of its allied nations. This has raised fears of a dangerous division in who owns and manages the infrastructure underpinning the global web.

In 2018, Amazon, Meta and China Mobile agreed to work together on a cable connecting California to Singapore, Malaysia and Hong Kong. But a spate of manoeuvres in Washington to block Chinese participation in US cables led to China Mobile pulling out of the consortium. Meta and Amazon filed a new application for the system in 2021, this time with no Chinese investment, no connection to Hong Kong, and a new name: Cap-1. Then, last year, the application for Cap-1 was withdrawn altogether, even though most of the 12,000km cable had already been built. China's original involvement remained a security concern for the US government, according to two people briefed on the discussions. "There are hundreds of millions of dollars sunk in the Pacific," said a person involved in the aborted project. Over the last five years, as tensions between the two countries have mounted and fears have grown in Washington about the risks of espionage, the US government has sought to pull apart an interwoven network of internet cables that had developed through international collaboration over decades.

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How the US is Pushing China Out of the Internet's Plumbing

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