FCC Proposes Ban on Chinese Tech in Undersea Cables to Secure US AI Infrastructure

FCC's Proposed Ban on Chinese Tech in Undersea Cables

The Federal Communications Commission (FCC) has announced plans to vote on new rules that would ban Chinese technology from undersea cables connecting the United States to the rest of the world. This proposal, spearheaded by FCC Chairman Brendan Carr, aims to secure critical infrastructure against foreign threats while accelerating the development of AI technology in the US 1

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The Importance of Undersea Cables

Submarine cables are crucial to global communications, carrying 99% of all international internet traffic and handling approximately $10 trillion in daily financial transactions 1

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. As Carr stated, "As the U.S. builds out the data centers and other infrastructure necessary to lead the world in AI and next-gen technologies, these cables are more important than ever" 2

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Proposed Measures

The FCC's proposal includes several key measures:

1. Presumptive denial of license applications from certain foreign adversary-controlled entities
2. Limitations on capacity leasing agreements with such entities
3. Prohibition of "covered" equipment in undersea cable infrastructure
4. Establishment of cybersecurity and physical security requirements
5. Streamlining of the Commission's license review procedures 1

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These rules would apply to companies on the FCC's entity list, which includes Chinese tech giants Huawei and ZTE 3

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Incentives and Exemptions

The proposal also includes incentives for using American submarine cable repair and maintenance ships and trusted technology abroad. It suggests a "presumptive entire exemption from Team Telecom review" for license applications meeting high-level security standards 1

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Recent Threats to Undersea Infrastructure

The FCC's move comes in response to recent threats to submarine cable infrastructure. In November 2024, two undersea cables connecting Finland and Sweden to Europe were cut, with evidence suggesting deliberate sabotage by a Chinese bulk carrier 1

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. Additionally, China has reportedly developed a deep-sea cable-cutting device capable of severing fortified underwater communication and power lines at depths of up to 4,000 meters 3

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Challenges and Precedents

This proposal follows previous efforts to remove Chinese technology from US communications infrastructure. In 2019, equipment made by Huawei and ZTE was banned from American telecommunications networks 1

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. However, implementing such bans has proven challenging, as evidenced by the ongoing "rip and replace" program for rural operators, which has faced funding shortfalls and delays 2

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Global Implications

The FCC's proposed rules could have significant implications for global communications infrastructure and international relations. As submarine cables are critical for worldwide internet connectivity and financial transactions, any changes to their management and security could impact global digital communication and commerce 4

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As the FCC prepares to vote on these new rules, the tech industry and international observers will be closely watching the outcome and its potential effects on the future of global communications infrastructure and AI development.