Understanding Subsea Internet Cables:

• Underwater cables serve as the backbone of international internet traffic, with over 95% of global data transmission relying on these cables.
• For decades, telecommunications and technology companies worldwide have shared ownership of these cables to create extensive networks for smooth data transmission across the globe.
• The strategic significance of these cables, coupled with their vulnerability to espionage and sabotage, has turned them into a key tool in the escalating tech rivalry between China and the United States.
• Both the US and China are in a race to dominate advanced technologies that could shape the world's economic and military landscapes in the future.
• The EMA project, led by China, is set to compete directly with a U.S.-based project named SeaMeWe-6 (Southeast Asia-Middle East-Western Europe-6), which plans to connect Singapore and France via several countries, including Pakistan, Saudi Arabia, and Egypt.
• Initially, the SeaMeWe-6 consortium, including China Telecom, China Mobile, China Unicom, and telecom carriers from various nations, selected HMN Tech for the cable construction.
• However, due to successful lobbying by the US government, the contract was reassigned to SubCom last year.
• In a significant move, the U.S. Commerce Department imposed sanctions on HMN Tech in December 2021, accusing the company of planning to use American technology to upgrade China’s People’s Liberation Army.

A Look at the EMA (Europe-Middle East-Asia) Project:

• The EMA cable network is being planned by China's three major carriers - China Mobile Limited, China United Network Communications Group Co Ltd (China Unicom), and China Telecommunications Corporation (China Telecom).
• Their goal is to develop one of the world's largest and most sophisticated underwater cable networks.
• The proposed EMA (Europe-Middle East-Asia) cable would originate from Hong Kong and extend to China’s Hainan island province.
• From there, it would extend to Singapore via Pakistan, Saudi Arabia, Egypt, and France.
• The project, estimated to cost $500 million, will be constructed and laid by HMN Technologies Co Ltd.
• The Chinese government plans to provide subsidies to HMN Technologies, a subsidiary of the Shanghai-listed Hengtong Optic-Electric Co Ltd.

The Inception of the EMA Project:

• The sanctions imposed by the US Department on HMN Tech made it impossible for HMN-built cable owners to sell bandwidth to US tech firms, their largest customers, thereby undermining the project's viability.
• Consequently, China Telecom and China Mobile withdrew from the project, and along with China Unicom, initiated planning for the EMA cable.
• The three telecom companies, all owned by the Chinese government, will own more than half of the new network and are also forging partnerships with foreign entities.
• Earlier this year, these Chinese companies signed agreements with several foreign telecom companies, including France’s Orange SA, Pakistan’s PTCL, Telecom Egypt, and Zain Saudi Arabia.
• They have also held discussions with Singapore’s Singtel.
• The Chinese companies are also reaching out to other countries in Asia, Africa, and the Middle East to join their consortium.
• Typically, large underwater cable projects take at least three years from planning to completion.
• The Chinese companies aim to finalize contracts by the end of this year and have the EMA cable operational by 2025.

China's Plan for a Subsea Internet Cable to Rival US-led Project [UPSC Notes]:-