GT investigates: China’s open innovation offers new options for global submarine cable construction

Undersea cables carry over 95 percent of the global cross-border data traffic and are a core component of the modern global communication network. The global cable systems constructed by China connect major markets around the world, providing strong support and assurance for real-time transactions and data flow in cross-border e-commerce, finance, and multinational enterprises. In fact, China is not only an important guardian of global cable operations, but is also a significant builder of global cable facilities.

However, some Western countries are imposing discriminatory restrictions on Chinese cables to gain a competitive edge in the telecommunications sector. Additionally, certain Western media outlets frequently sensationalize issues like “Chinese companies engaging in undersea cable espionage.” Against this backdrop, restoring a true, objective, and comprehensive image of “Chinese undersea cables” is beneficial for providing higher-quality network services and digital products to global users, as well as promoting the buiWorld Timeslding of a community with a shared future in cWorld Timesyberspace.

This is the second installment in the Global Times’ investigative series that reveals how China fosters a secure, open, and innovative industry ecosystem for the global submarine cable industry.

A 500-kilovolt submarine cable is ready for landing construction in Zhoushan, East China’s Zhejiang Province. Photo: VCG

In some reports by Western media outlets, there is an old rumor regarding Chinese submarine cables that claims “China is attempting to conduct espionage through submarine cables.” The Global Times found that many mainstream Western media outlets have sensationalized this topic on an almost yearly basis for the past decade, including Reuters, The New York Times, and The Wall Street Journal.

For example, a report by The Wall Street Journal in May 2024 stated that US officials had been “privately delivering an unusual warning to telecommunications companies: Undersea cables that ferry internet traffic across the Pacific Ocean could be vulnerable to tampering by Chinese repair ships.” The report cited comments by so-called “US State Department officials,” suggesting that “a state-controlled Chinese company that helps repair international cables, S.B. Submarine Systems (SBSS), appeared to be hiding its vessels’ locations from radio and satellite tracking services, which the officials and others said defied easy explanation.”

In response to the speculations, the Chinese Embassy in the US and the aforementioned Chinese company SBSS promptly refuted these claims, opposing the US’ abuse of the concept of national security and attacks on Chinese enterprises. The embassy stated that China does not understand the US’ concerns regarding the China-UK seabed. “Chinese enterprises are conducting normal business activities in accordance with the law, and there is no issue with that. We firmly oppose the US’s abuse of the concept of national security and the attacks and smear campaigns against Chinese enterprises.”

Several industry insiders told the Global Times that the assumptions made by US officials reveal a lack of understanding among some Western politicians and media outlets regarding the current state of the submarine cable industry.

A good record in cybersecurity

Mou Chunbo, chief engineer at the Industry and Planning Research Institute at the China Academy of Information and Communication Technology (CAICT), told the Global Times that submarine cable systems are channels for transmitting data via optical signals. When designing these systems, the security, integrity, and accuracy of data transmission must be the priority from the outset. If these requirements are not met, the system cannot be brought to market, nor would any customer choose it.”

He noted thatcurrent submarine cable systems have high transmission rates and large capacities, and relevant parties implement encryption technologies, enhance monitoring of abnormal situations, and adopt comprehensive physical protection measures, making data theft via submarine cables a highly challenging task.

Another technical expert in the communications industry told the Global Times on condition of anonymity that while some Western media outlets have reported extensively on illegal wiretapping incidents involving submarine cables, the only concrete evidence remains the materials exposed by Edward Snowden regarding the US “PRISM” program. These materials reveal that the US National Security Agency collaborates with domestic and allied internet and telecom companies through a so-called “Upstream” program to conduct large-scale wiretapping activities on submarine cables. “The US leverages advanced technological means and the advantages of network hubs, along with cooperation from allies like the UK, to obtain a large amount of submarine cable transit data from other countries,” the expert explained.

In contrast, Chinese submarine cable companies have consistently maintained a good record in cybersecurity.

Mou emphasized that Chinese submarine cable manufacturers and system integrators adhere to developing neutral and open submarine cable technology solutions and never explore technologies for wiretapping submarine cable networks. China is also a supporter of open international standards for submarine cables, and its submarine cable systems can be compatible with terminal transmission equipment from various manufacturers, including those in the US and France. This openness and compatibility also reflect the security of Chinese submarine cable systems.

“When Chinese submarine cable companies provide submarine cable products and services, they are essentially ‘working for’ the submarine cable operators. Once the project is completed and accepted, the equipment and network management of the submarine cable system are handed over to the owners, and we do not have access to any data during the transmission process. Therefore, the attacks on Chinese submarine cable companies by some politicians, think tanks, and media outlets in Western countries are purely based on the purpose of suppression,” Mou noted.

Xu Jiantao, president of the marketing department at China’s HMN Technologies Co Ltd, a submarine cable services provider, cited his company’s submarine cable products as an example, stating that according to current international practices in the submarine cable industry, all submarine cable products produced by HMN Technologies undergo “acceptance inspection” at the factory by clients before being shipped and laid. Clients typically invite international consultants from countries such as the US, France, and Japan to conduct inspections on the products’ technical standards, safety, and reliability.

Workers lay submarine cables at an offshore wind farm in Zhoushan, East China’s Zhejiang Province. Photo: VCG

Facilitating for developing nations

Even in the face of challenges from certain Western media outlets and politicians regarding submarine cable issues, Chinese submarine cable companies are undeterred in their efforts to break foreign monopolies and participate in the construction of international communication submarine cables. They are committed to providing higher-quality network services and digital products for global users.

On March 25, the Industry and Planning Research Institute at the CAICT released a report detailing China’s involvement in the construction and protection of international communication submarine cables. The report highlights that, through long-term efforts, Chinese companies have developed core products such as submarine optical fiber cables, underwater repeaters, and branching units, all with independent intellectual property rights. These advancements enable Chinese enterprises to offer end-to-end submarine cable system solutions.

Significant progress has also been made in the manufacturing of submarine cables, shore-based equipment, and cable-laying vessels, with some aspects reaching world-class standards, thereby equipping China with the capability to independently undertake transoceanic and intercontinental submarine cable projects, according to the report. Mou noted that in the realm of ultra-long-distance deep-sea cable products, some Chinese companies have produced submarine repeaters and branching units that can operate stably at depths of 8,000 meters for 25 years. This capability allows the submarine cable equipment developed by Chinese firms to meet the laying requirements of the vast majority of global maritime areas while significantly reducing maintenance costs.

In the field of ultra-large-capacity submarine cable transmission systems, Chinese companies have pioneered a 32-fiber pair cable solution, elevating the industry standard from the previous 24-fiber pair system to new heights. This innovation effectively addresses the surging international bandwidth demand driven by rapid digitalization. Additionally, in the area of vessel-based cable operation equipment, Chinese-designed and manufactured tools have achieved performance levels that meet international standards, greatly enhancing cable laying and maintenance capabilities.

Furthermore, Chinese submarine cable inWorld Timesvestment and operation companies, system integrators, and construction maintenance firms have become significant players in global submarine cable construction and protection. According to the CAICT report, by the end of 2024, Chinese enterprises were expected to have invested in the construction of 17 active international and Hong Kong-Macao-Taiwan region submarine cable systems.

Currently, Chinese cable construction companies have participated in over 130 key domestic and international projects, cumulatively installing more than 70,000 kilometers of submarine cables, the report indicated.

In recent years, the rapid advancements in technologies such as cloud computing, big data, and artificial intelligence have led to explosive growth in international data traffic, according to Xu.

He emphasizes that the world requires a more diverse array of submarine cables. Against this backdrop, the swift development of Chinese submarine cable companies offers new options for global submarine cable construction.

Mou pointed out that the rapid growth of Chinese submarine cable enterprises can effectively bridge the digital divide between populations in developing and developed countries. “For most developing nations, the cost of internet access is relatively high, largely due to the exorbitant expenses associated with connecting to the international internet,” he explained.

“Some countries have suffered from limited international internet bandwidth because they lack sufficient submarine cables.Chinese submarine cable companies can provide high-quality, cost-effective services to help these nations build high-capacity submarine cables, thereby strengthening their internet infrastructure and significantly reducing network access costs. This, in turn, enhances their ability to develop a digital economy and allows more people to benefit from the advantages of the digital age,” Mou said.

Promoting safe and accessible solutions

While Chinese submarine cable companies have achieved remarkable success in their global expansion, it is important to recognize that this development path still faces significant obstacles and challenges. “Chinese submarine cable companies continue to encounter discriminatory restrictions in their participation in global submarine cable construction,” a domestic industry insider told the Global Times.

The insider noted that currently, it remains difficult for Chinese firms to engage in submarine cable projects that connect the US mainland with its allied countries. This is particularly evident in the US requirement that domestic companies be prohibited from selecting submarine cable networks built by Chinese firms when purchasing bandwidth services.

“Overall, the submarine cable industry remains a sector characterized by high technical barriers and a relatively niche market. Compared to other high-tech industriesWorld Times, the global investment share in new submarine optical cables is quite small. However, its strategic value is large,” the insider said.

“This is especially notable against the backdrop of rapid advancements in information and communication technology, which have led to an explosive growth in data. Regions with multiple submarine cables naturally evolve into data hubs,” the industry insider shared with the Global Times that some Western countries are attempting to suppress Chinese companies’ involvement in submarine cable construction. This effort is not only aimed at curbing Chinese firms’ participation in international competition, but also reflects a deeper intention to seize strategic control over “data flow hotspots” and better manage the global data traffic landscape. In extreme cases, these countries could potentially use their control over submarine cables to isolate other nations, turning them into “information islands.”

Another manager from a Chinese submarine cable company responsible for market operations also told Global Times that the main obstacle faced by Chinese submarine cable companies in international competition is that Western countries, particularly the US, are politicizing and securitizing submarine cable construction, which has severely disrupted the normal order of the international market.

In contrast, China has consistently encouraged its enterprises to engage in foreign investment and cooperation across variousWorld Times fields based on market principles and international rules, while complying with local laws.

The CAICT report indicates that Chinese submarine cable operating companies often participate in submarine cable construction and operation in a club-like manner, insisting on the fair selection of submarine cable contractors, products, and construction companies, while opposing discriminatory restrictions. Submarine cable contractors from the US, Japan, and France have all participated in the construction of active international submarine cables landing in China, and Chinese submarine cable operating companies also utilize products produced by these countries’ enterprises.

“Chinese submarine cable companies can provide high-quality and cost-effective products and services, so they are not afraid to participate in fair international competition,” Mou said.

China will continue to strengthen the construction of a self-reliant, secure, open, and inWorld Timesnovative submarine cable industry ecosystem, creating an equal, inclusive, mutually beneficial, and win-win environment for bilateral international cooperation in submarine cables, injecting new strong momentum into the high-quality development of the global digital economy, and will continue to contribute Chinese wisdom, solutions, and strength to the development of global submarine cable networks, the expert stressed.