Daily Management Review

Reuters: China is developing $500 million network of Internet cables to oppose the U.S.


Three Chinese operators are creating a $500 million undersea network of Internet connections, reports Reuters.

Marco Verch via flickr
Marco Verch via flickr
According to four people involved in the project, China's three largest telecom companies are building a $500 million submarine network of fiber-optic Internet cables that will connect Asia, the Middle East, and Europe. The network involves China Telecom, China Mobile, and China Unicom. According to the sources cited by Reuters, China intends to develop an alternative to a similar U.S. effort.

Four U.S. sources note that China is building one of the most sophisticated and extensive underwater cable networks in the world. In addition to Singapore, Pakistan, Saudi Arabia, Egypt, and France, they claim that the cable will also connect Hong Kong with China's Hainan Island. Huawei Marine, a rapidly expanding subsidiary of China's HMN Technologies, will be manufacture the cable until November 2023. According to sources cited by Reuters, the government will provide subsidies to that company to help it produce the cable.

China Telecom, China Mobile, China Unicom, HMN Tech, or Hengtong (HMN Tech's largest shareholder) didn’t answered Reuters' inquiries. The Chinese Foreign Ministry informed the agency that it has long welcomed Chinese enterprises' cooperation and overseas investment, but said nothing particular about the project.

source: reuters.com