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China initiates $500 mln subsea cable to compete with US-led SeaMeWe-6

Friday, 07 April 2023 16:47
China initiates $500 mln subsea cable to compete with US-led SeaMeWe-6

(Ecofin Agency) - Information and communication technologies (ICT) are one of the strategic fronts in the battle for influence between China and the United States. In that sector particularly, the rivalry between those two world powers could benefit Africa. 

State-owned companies China Telecom, China Mobile Limited, and China United Network Communications Group Co Ltd are planning to build a new fiber-optic network linking Asia, Africa, and Europe, sources close to the matter said, according to Reuters. Called EMA, the project will cost about $500 million and will allow China to compete with the United States, which is backing a similar project.

The proposed cable will be manufactured and rolled out by the Chinese company HMN Technologies Co Ltd, we learn. It is expected to link Hong Kong to the Chinese island province of Hainan, before snaking its way to Singapore, Pakistan, Saudi Arabia, Egypt, and France. Other countries along this route could also be connected to the infrastructure.

The EMA cable will compete directly with the proposed SeaMeWe-6 (Southeast Asia-Middle East-Western Europe-6). This project comes after China Mobile and China Telecom withdrew from the SeaMeWe-6 consortium in 2022 under U.S. pressure. Washington notably militated for the contract for the construction of SeaMeWe-6 to be withdrawn from HMN Technologies and handed to  U.S. company SubCom.

Digital technologies and infrastructure are major tools in the U.S.-China battle for world dominance. Washington and its allies have taken initiatives to ban or sanction Chinese technology companies such as Huawei, HMN, and TikTok... In addition, the US has refused -since 2020- to authorize several undersea cables involving Chinese companies or directly linking the US to mainland China or Hong Kong, citing national security concerns.

The new project is expected to improve Internet connectivity for millions of people around the world, especially in Africa. Chinese telecom companies have already signed a partnership agreement with Telecom Egypt to land the cable in Egypt. Other operators on the continent have also been approached to join the consortium.

Isaac K. Kassouwi





 
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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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