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🌊🇺🇸🇨🇳| Tech War 2.0: US Tries To Push China Out Of International Telecoms Cables Over 1.4 million km of armored fiber optic cables cross the world's oceans, ensuring that the global internet works. Now experts warn that the subsea cable market may be split into blocs. 🧵1/10
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To date, the supply and installation of these cables have been dominated by companies from the US, France, and Japan. However, when Chinese firms started making headway, the US government started excluding them from this infrastructure. 2/10
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Analysis by FT has found that these measures seem to have succeeded. Chinese supplier HMN Tech has only provided 10% of the equipment for current and planned cables, while France’s SN has supplied 41% & the US supplier SubCom supplied 21%. 3/10
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Allegedly, according to 20 FT industry sources, Washington has managed to enforce a de facto ban on Chinese equipment, even for projects that have no US involvement. 4/10
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This led to the scrapping of Meta and Amazon’s 12,000 km CAP-1 cable connecting California to East Asia, which was almost complete. The cable was originally supposed to be built in partnership with China Mobile, who pulled out years ago but this wasn’t enough for the US. 5/10
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A joint venture between Huawei and a UK company, called Huawei Marine, had captured 15% of the global market in 2019 before the US sanctioned the Chinese tech champion. The firm was bought by a regional Chinese cable maker and renamed HMN Tech. 6/10
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In 2021, under US pressure, the World Bank scrapped a project that was going to bring much-needed internet access to three Pacific island nations to avoid giving the award to the best bidder, HMN Tech. 7/10
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In light of this harassment, Chinese firms are leading cable projects in the Global South. China’s UNICOM was the biggest investor in SAIL, the cable connecting Brazil to Cameron in 2020 and China Mobile is building the 2Africa cable connecting Africa with Europe. 8/10
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HMN Tech has now become a favorite for cable bids because it is able to deliver projects for 20-30% cheaper than its Western counterparts. China has also commissioned 3 new cable-laying ships to be less dependent on foreign ones. 9/10
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In 2020, it was revealed that the US had teamed up with Danish intelligence to spy on European internet users by tapping international cables inside landing stations. The Snowden revelations also showed that the UK routinely stole bulk data from stations in its territory. /10
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Whether this hostility will fracture the global internet infrastructure remains to be seen. Source: https://ig.ft.com/subsea-cables/
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🌊🇺🇸🇨🇳| Tech War 2.0: US Tries To Push China Out Of International Telecoms Cables Over 1.4 million km of armored fiber optic cables cross the world's oceans, ensuring that the global internet works. Now experts warn that the subsea cable market may be split into blocs. 🧵1/10 https://t.co/F6tKPUA0Iy
