The State Department announced that work to manufacture and lay the East Micronesia Cable (EMC) is officially underway. The EMC Management Committee members have signed the undersea cable contract with NEC Corporation following a competitive tender.
The undersea cable contract is a key component of the estimated AUD135 million ($95 million USD) EMC project, funded by Australia, Japan, and the United States. The project will deliver an undersea cable connecting the state of Kosrae in the Federated State of Micronesia, Tarawa in Kiribati, and Nauru to the existing HANTRU-1 cable landing point located in Pohnpei, FSM.
Initially, the EMCS project was led by the World Bank in association with the Asian Development Bank. However, it hit a stalemate due to security concerns over a bid from Chinese HMN Technologies (HMN Tech), especially given the project's planned connection to a sensitive cable leading to Guam, a U.S. territory with significant military assets. After U.S. warnings about potential security threats from Chinese firms, the World Bank-led project did not award the contract to HMN Tech.
Next steps involve final survey and design of the route and manufacturing of the cable, which will be no wider than a garden hose. Once built, the cable will be laid across the ocean floor and connected to landing infrastructure that will also be constructed in each country.
Submarine cables, which carry over 95% of international data and daily financial transfers estimated at $10 trillion, are critical to global digital infrastructure.
China wants to reduce its dependence on foreign cables while making other countries more dependent on Chinese networks. According to a report by The Atlantic Council. China has sought to leverage underwater cable systems to detect submarines by fitting them with monitors and sensors.
Chinese firms have significantly expanded their footprint in the Middle East and North Africa (MENA) submarine cable networks since the late 90s. They have built, upgraded, or acquired stakes in 13 of the 62 cables in the region, establishing 57 connections at 39 landing stations. An additional cable, SeaMeWe-6, will go online in 2025, increasing the total to 61 connections.
By allowing Chinese cables to land on their shores, Middle Eastern and North African (MENA) states are diversifying their cable networks, reducing reliance on Western suppliers that have traditionally dominated the market.
China’s extensive economic interests and growing involvement in MENA affairs elevate the importance of acquiring reliable regional intelligence. Submarine cables could prove useful to China in this regard.
With China's goal to secure 60% of the cable market by 2025, the MENA region could grow increasingly dependent on Chinese networks for sensitive data transmission.
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