World map of submarine communication cables in 2016. Greg Mahlknecht.
Two Chinese telecom firms pulled out of an internet cable project linking Europe to Asia.
The decision came after a U.S. firm was selected over its Chinese competitor to build the project, reports the Financial Times.
- China
Telecom and China Mobile withdrew their investments in the Sea-Me-We 6
pipeline project that is set to lay undersea cables linking southeast
Asia to western Europe.
- The combined value of the withdrawn investments would have represented about 20% of the $500M project.
- The two companies pulled out after SubCom, a U.S. firm, was selected over China's Hengtong Marine to build the project.
- China's
departure from the project signals rising tensions between Washington
and Beijing, which are battling for control of global internet
infrastructure, reports the Financial Times, citing people familiar with
the matter.
Zoom Out:
- Over 95% of international data is carried over undersea cables.
- Washington is taking steps to "de-sinicize" the world's digital economy in response to China's rising influence over global telecommunications.
- Experts fear that geopolitical tensions between the U.S. and China risk decoupling internet infrastructure controlled by the two countries.
