US Warns Pacific Islands Over Chinese Bid For Cable Project

According to a report from Reuters, the US warned Pacific island nations over a Chinese company’s bid to build an undersea internet cable that is part of a regional infrastructure project.

A former subsidy of Huawei Technologies, known as Huawei Marine, bid on a project that seeks to improve communications between the Pacific island nations of Kiribati, the Federated States of Micronesia (FSM), and Nauru.

Huawei Technologies is a Chinese firm specializing in 5G that the US regularly pressures its allies not to do business with. Huawei Marine was sold by Huawei Technologies in 2019 and is now controlled by a different Chinese firm.

Sources told Reuters that Huawei Marine’s bid is 20 percent lower than its nearest competitors, making the firm a frontrunner for the project. According to the sources, the US sent a diplomatic cable to FSM in July warning against using Huawei Marine for the project. The cable followed earlier warnings from Washington to FSM and Nauru.

The government of FSM issued a statement to Reuters that said some of the island nation’s partners “have addressed a need to ensure that the cable does not compromise regional security by opening, or failing to close, cyber-security related gaps.”

FSM was administrated by the US after World War II until 1979. Today, FSM and its neighbors Palau and Marshall Islands are in a free association agreement with Washington. Meaning, the US is responsible for the islands’ defense and provides subsidies and some social programs to its former territories.

After the Reuters report was published on Thursday, China responded, accusing the US of smearing its companies. Trying to prevent Chinese infrastructure projects is nothing new for the US. Washington often tries to discourage countries from participating in China’s Belt and Road Initiative.