The U.S. government is overhauling undersea cable rules for the first time since 2001, tightening restrictions to keep companies linked to adversaries such as China, Russia, and Iran out of the supply chain, according to Nikkei Asia.

The Federal Communications Commission (FCC) approved proposed rules that bar adversary-based firms from working on U.S.-owned undersea cables or supplying related equipment. Approved companies will need cybersecurity plans and must certify their supply chains are free of such entities.

To encourage investment, the FCC will streamline approvals for U.S. firms and partners from Japan and Europe, cutting the typical two-year process. Reapproval will be required every 25 years instead of every three, as originally proposed.

Nikkei writes that the rules could benefit trusted suppliers like Japan’s NEC, though they face added screening obligations.

Globally, 90% of undersea cables are made by NEC, U.S.-based SubCom, and France’s Alcatel Submarine Networks. China’s HMN Technologies is expanding, particularly in Africa and the Pacific.

Undersea cables carry more than 95% of international data traffic and facilitate an estimated $10 trillion in daily financial transactions. Tech giants like Google, Meta, and Amazon are among the largest operators. Concerns over Chinese involvement intensified after incidents such as a Chinese-crewed ship damaging a cable in the Taiwan Strait in April.

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