The U.S. Federal Communications Commission is gearing up for a significant regulatory move that could reshape the global undersea cable industry, proposing rules to prohibit the use of Chinese technology or equipment in submarine communication cables connecting to American shores.

This initiative, announced on July 16, 2025, stems from escalating national security concerns about potential espionage and infrastructure vulnerabilities in the vast network of undersea cables that carry nearly all international internet traffic.

FCC Chair Brendan Carr emphasized the threats posed by foreign adversaries, particularly China, to these critical assets. “We have seen submarine cable infrastructure threatened in recent years by foreign adversaries, like China,” Carr stated, highlighting the need to safeguard against both cyber and physical intrusions. The proposed ban would extend to cables operated by Chinese companies, effectively barring them from U.S. connections.

Escalating Geopolitical Tensions in Global Connectivity

The undersea cable network, comprising around 400 active lines worldwide, handles an estimated 99% of global web traffic, making it a linchpin of international commerce, communication, and data exchange. According to reports from The Straits Times, U.S. officials are increasingly alarmed by incidents where cables have been damaged or tampered with, often in regions of strategic importance like the South China Sea. This has prompted a broader push to diversify supply chains away from Chinese dominance in telecommunications hardware.

Industry experts note that companies like Huawei Marine, a subsidiary of the Chinese tech giant Huawei, have been major players in laying and maintaining these cables. The FCC’s plan, as detailed in Engadget, aims to prevent such entities from integrating their technology into new or existing projects that touch U.S. territory, potentially forcing rerouting or redesigns of multibillion-dollar infrastructure investments.

National Security Imperatives Driving Policy Shifts

The move aligns with a series of U.S. actions to curb Chinese influence in tech sectors, including previous bans on Huawei and ZTE equipment in domestic networks. ETTelecom reported that the FCC’s proposal is part of a concerted effort to mitigate risks of data interception or sabotage, especially amid reports of Chinese vessels lingering near cable routes. “The FCC plans to restrict Chinese technology in undersea submarine communication cables to protect national security and prevent espionage,” the outlet stated, underscoring the agency’s focus on critical internet infrastructure.

Beyond immediate bans, the rules could require enhanced scrutiny of cable landing licenses, mandating that operators demonstrate the absence of Chinese components. This regulatory framework, expected to be voted on soon, draws from intelligence assessments warning of vulnerabilities in repeater stations and other submerged equipment that could be exploited for surveillance.

Implications for International Trade and Tech Alliances

For global telecom firms, the ban poses logistical and financial challenges. Projects like the Pacific Light Cable Network, which faced scrutiny in 2020 over Chinese involvement, illustrate the precedents. Investing.com highlighted that the policy could accelerate shifts toward suppliers from Japan, Europe, or the U.S., such as SubCom or NEC, potentially increasing costs but bolstering security.

Allies like the U.K. and Australia have echoed similar concerns, with joint efforts under frameworks like the Quad alliance to secure Indo-Pacific cable routes. However, critics argue the ban might fragment the global internet, raising barriers to connectivity in developing regions reliant on affordable Chinese tech.

Future Horizons: Balancing Security and Innovation

As the FCC advances these rules, industry insiders anticipate legal challenges from affected companies, possibly invoking international trade agreements. Bloomberg Law noted that the commission’s chair told the Financial Times of intentions to bar any Chinese technology outright, signaling a zero-tolerance stance.

Ultimately, this policy reflects a pivotal moment in the U.S.-China tech rivalry, where undersea cables—once seen as neutral conduits—now embody frontline battlegrounds. With implementation timelines unclear, stakeholders from telecom giants to cybersecurity firms are bracing for a transformed landscape, one where geopolitical risks increasingly dictate engineering decisions. The full ramifications could unfold over years, influencing everything from data sovereignty to global economic flows.