On July 17, 2025, the Federal Communications Commission (FCC) proposed new rules aimed at safeguarding national security by restricting the use of Chinese technology in undersea telecommunications cables connecting the U.S. to the global internet. The proposal, which directly impacts critical international data transmission infrastructure, represents the latest effort by the U.S. government to limit foreign interference in key sectors of its technology and communications networks.
Undersea cables, which carry over 95% of global data traffic, are critical to the modern internet and telecommunications infrastructure. These cables, which stretch across oceans and connect continents, facilitate everything from private emails to massive data exchanges between global financial institutions. As they form the backbone of international internet traffic, they are vital not only for business but also for national security.
The new FCC rules would prevent U.S. companies from utilizing Chinese-manufactured equipment or technology in the installation and operation of these undersea cables. Companies such as Huawei and ZTE, which have been the subject of global scrutiny over national security concerns, are specifically targeted by the FCC’s proposed restrictions. These firms have long been accused of posing potential risks by enabling espionage or interference with communications under the control of foreign powers.
Why This Matters
The FCC’s proposal is part of a broader strategy to protect U.S. communications infrastructure from potential threats posed by foreign governments, particularly China. In recent years, the U.S. has taken a more aggressive stance in limiting Chinese companies’ influence over American technology and infrastructure, citing concerns about espionage and cyber attacks. Huawei and ZTE, two of the most prominent Chinese technology companies, have been at the center of the debate, with U.S. lawmakers arguing that their involvement in key sectors like telecommunications could facilitate spying.
The issue is particularly critical in the case of undersea cables. These cables carry vast amounts of sensitive data, including communications related to government operations, international diplomacy, and global commerce. Given the importance of these cables in maintaining secure communications and the growing sophistication of cyberattacks, the U.S. has taken a firm stance on limiting the involvement of Chinese companies in managing such infrastructure.
In the context of U.S.-China relations, the push to exclude Chinese technology from undersea cables also serves as a response to broader geopolitical tensions. Over the past few years, there has been a growing confrontation between the two powers, particularly in the field of 5G technology, where the U.S. has actively sought to exclude Huawei from participating in 5G networks. The U.S. is now extending these concerns to undersea cables, recognizing them as a critical vulnerability that must be secured.
Challenges to U.S. Telecom Companies
While the FCC’s proposal is intended to enhance national security, it also has the potential to disrupt the operations of U.S. telecom companies and global communication providers. Many U.S. companies, including internet service providers and multinational firms, rely on Chinese manufacturers for telecommunications infrastructure. The cost-effectiveness and advanced technology provided by Chinese firms like Huawei and ZTE have made them attractive partners for building large-scale networks, including undersea cables.
For instance, Huawei Marine Networks, a subsidiary of Huawei, is one of the largest providers of undersea cable solutions globally. Their exclusion from the U.S. market could mean that U.S. firms will need to seek alternatives from other suppliers, which may come at a higher cost and could delay the deployment of future cable projects. While companies like NEC and SubCom could step in to fill the gap, the transition away from Chinese technology could disrupt existing projects and require substantial investment.
Telecommunications companies may also face challenges as they attempt to update or replace their infrastructure. U.S. firms may need to comply with new regulations that prohibit the use of Chinese-made technology in cables currently in operation, requiring extensive retrofitting or even the replacement of certain components. This shift could lead to significant operational disruptions and increased costs for telecom providers who have already invested heavily in infrastructure.
Impact on Global Collaboration
The FCC’s proposed rule could have far-reaching implications for international collaboration on undersea cable projects. Undersea cables are often developed through partnerships between countries and multinational corporations. Chinese companies like Huawei have been integral to several undersea cable projects in Asia, Africa, and Europe, where the costs of laying these cables can be astronomical.
Excluding Chinese technology from these projects could disrupt the global supply chain for undersea cable infrastructure, especially in regions where Chinese firms have dominated the market. However, the U.S. is not the only country concerned about Chinese involvement in critical telecom infrastructure. Several European countries have also expressed concerns about Huawei’s role in 5G networks and have implemented their own restrictions.
Given the importance of undersea cables for global trade and security, the exclusion of Chinese companies could also impact international relations. Countries that rely on Chinese technology may resist the move, viewing it as part of a larger geopolitical struggle. India, Brazil, and several African nations have already expressed concerns about being caught in the middle of the U.S.-China conflict.
The Path Forward
The FCC’s proposal is still in the public comment stage, and the commission will review feedback from industry stakeholders before making a final decision. The process could take several months, and it is unclear whether the rule will be fully implemented or modified based on feedback. If the ban is enforced, it could set a significant precedent for other nations considering similar restrictions.
The proposal has already sparked debate within the industry, with some experts arguing that it could stifle innovation and increase costs, while others believe that it is necessary to ensure the security of critical infrastructure. The growing trend of cybersecurity concerns in global telecom networks is likely to continue shaping these discussions for years to come.
