The United States’ move to ban Chinese technology from undersea communications cables is an important moment in global tech governance with potentially significant implications for Southeast Asia. The Federal Communications Commission (FCC) announced on July 16 its intention to bar companies from connecting submarine cables to the United States if any Chinese technology or equipment is involved, marking another significant escalation in China-U.S. technological competition. The rules will apply to companies on the FCC’s existing list of entities that pose “an unacceptable risk to the national security of the United States,” including Huawei, China Telecom, and China Mobile.

This development complicates the strategic balancing act that Southeast Asian countries must navigate, as they work to preserve their autonomy while managing competing pressures from both Washington’s “clean network” initiatives and Beijing’s digital ecosystem investments.

The Strategic Context and Security Rationale

Undersea cables carry approximately 99 percent of all international internet traffic, making them the backbone of the global digital economy. For Southeast Asia, these cables are particularly vital in supporting the region’s ambitious goal of becoming a central digital hub and its projected digital economy growth to $1 trillion by 2030.

Recent incidents have made security concerns increasingly urgent. The cutting of critical fiber cables in the Baltic Sea in late 2024 prompted sabotage investigations. Prior to that, in 2023, Taiwan accused Chinese vessels of severing its internet connections to the Matsu Islands in what was widely viewed as an exercise in gray zone coercion – the use of tactics below the threshold of armed conflict to achie