A US proposal to block a segment of a major undersea cable network is threatening Hong Kong's position as Asia's telecommunications hub. The potential blocking of the project could also threaten the city's planned rollout of 5G mobile services as well as hamper its ability to further enhance its communications infrastructure.
The proposal was submitted by the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector on Wednesday. In it, the inter-agency committee recommended to the Federal Communications Commission (FCC) that it denies an application for the installation of the undersea fiber optic cable network from Hong Kong on the grounds of national security. The undersea cable would connect Hong Kong to the US West Coast, providing a direct and high-speed link between the city and Los Angeles.
Hong Kong officials noted that the blocking of the project would be a big blow to the city and its position as the region's telecommunications hub. The proposed cable network, called the Pacific Light Cable Network (PLCN), would have been the world's first and longest high-bandwidth undersea fiber-optic link between the two countries.
The cable network is meant to connect major data centers located within the two cities. Officials warned that without the link, international bandwidth using 5G in Hong Kong will be very limited.
China's Commerce and Economic Development Bureau (CEDB) noted that the recommendation made by the US inter-agency committee to the FCC will hinder telecom development for both countries. Apart from that, the massive hurdle is expected to harm the businesses and interest of investors from both sides. The CEDB claims that the allegations and the concerns raised by the US committee were without basis as the proposed link does not pose any security risks.
The US committee, which is under the Department of Justice's National Security Division, had made the proposal to block a segment of the PLCN project given its Chinese owners. According to its announcement on Wednesday, the owners of the Hong Kong segment of the project included a company called Pacific Light Data Co, which is a subsidiary of Chinese telecom firm Dr Peng Telecom & Media Group Co.
The committee alleged that by allowing the project to be built, the US would be exposing its communications traffic to possible espionage by Chinese agents. In its proposal, the committee recommended that the FCC block the project's Hong Kong segment but allow portions of the network that connected the US to Taiwan and the Philippines. The segments connecting to the two countries are separately owned by subsidiaries of Facebook and Google.
