Undersea cables have emerged as the next critical frontier in US-China strategic competition, with both nations competing to control the fiber-optic lines that carry roughly 99 percent of the world's data traffic. Once viewed as neutral telecommunications infrastructure, these submarine networks are now recognized as essential to economic competitiveness, national security, and technological leadership, especially as artificial intelligence and cloud computing demand faster, more reliable global data movement.

Why Are Undersea Cables Suddenly a Geopolitical Prize?

The shift from viewing cables as commercial infrastructure to treating them as strategic assets reflects a fundamental change in how nations understand power and influence. As one expert explained, whoever controls this critical infrastructure gains leverage over how data flows globally. The stakes have grown dramatically because these cables now transmit multiple terabits of data per second between continents, supporting everything from international finance to AI model training and cloud services.

"Whoever controls critical infrastructure can exercise significant influence over how it's used, by whom, on what terms and at what cost," said Bart Hogeveen, senior fellow and Europe director at the Australian Strategic Policy Institute.

Bart Hogeveen, Senior Fellow and Europe Director, Australian Strategic Policy Institute

The urgency intensified after the COVID-19 pandemic, when demand for reliable internet connectivity surged. More recently, the rise of artificial intelligence and the prospect of quantum computing have created an insatiable appetite for faster, more secure subsea cables. Competition over this infrastructure is expected to intensify significantly in the coming years.

How Are the US and China Competing for Cable Control?

The two superpowers are pursuing distinctly different strategies to dominate undersea cable infrastructure. Washington has tightened government oversight and is using diplomatic pressure to shape cable projects, while Beijing is expanding its presence through state-linked companies and Digital Silk Road initiatives.

The clearest example of geopolitical influence reshaping the cable industry is the SeaMeWe-6 project, a planned 21,700-kilometer cable system linking Singapore and France through Southeast Asia, the Middle East, and Europe. The contract was initially expected to go to China's HMN Tech, formerly Huawei Marine Networks, but was ultimately awarded to US-based SubCom following an intensive US lobbying campaign. This episode illustrated how commercial competition over price and technology has been increasingly replaced by diplomatic and national security considerations.

Meanwhile, Beijing has continued expanding its cable footprint through HMN Tech and Digital Silk Road-linked projects across Asia, Africa, the Middle East, and Latin America. According to a report from the China Academy of Information and Communications Technology, HMN Tech has delivered more than 100,000 kilometers of submarine cable systems, operating in more than 70 countries and regions.

What Recent Policy Changes Signal About This Competition?

Government action has accelerated the militarization of the undersea cable sector. In June 2026, the US Federal Communications Commission moved to tighten oversight of submarine cable infrastructure by imposing stricter licensing requirements for owners and operators of cable landing stations and related equipment as part of broader national security measures. This proposal builds on Washington's Clean Cable initiative, launched in 2020 during President Donald Trump's first term, which sought to reduce Chinese participation in sensitive cable projects.

The policy shift reflects growing awareness that controlling data flows can generate significant economic and political leverage without military confrontation. Recent cable damage incidents around Taiwan and in the Baltic Sea, along with new initiatives to strengthen the protection of critical seabed infrastructure, have pushed what was once an obscure industry into the spotlight.

Steps to Understanding the Strategic Importance of Undersea Cables

• Data Volume: Undersea cables carry approximately 99 percent of global data traffic, including email, webpages, video calls, financial transactions, and AI model training data, making them the backbone of the modern digital economy.
• Technology Giants' Involvement: The commercial landscape has shifted dramatically, with tech giants like Google, Microsoft, Amazon, and Meta now among the leading investors and developers of submarine cable infrastructure, alongside traditional telecom operators.
• Next-Generation Competition: Countries and companies are competing not just to lay more cables, but to develop the next generation of cable technology with faster speeds, enhanced security, and increased capabilities to detect faults and measure oceanic activity.

The convergence of technology and geopolitics has fundamentally transformed how nations view undersea infrastructure. What was once a little-known industry focused on connecting continents has become a critical arena for strategic positioning, economic security, and technological dominance.

"Economic security is now national security," said Erin Murphy, Asia managing director at US-based global advisory firm Redpoint Advisors.

Erin Murphy, Asia Managing Director, Redpoint Advisors

The competition over undersea cables echoes earlier contests over China's Belt and Road Initiative and the rollout of 5G networks, but with higher stakes. Those who can dominate or control this critical infrastructure will have a significant advantage in shaping global connectivity, setting technical standards, and ensuring resilience of their own digital ecosystems. As AI and cloud computing continue to drive demand for data movement across borders, the race to control undersea cables will likely become even more intense and strategically consequential.