U.S. Backs $14 Billion Pacific Cable Bypassing South China Sea to Counter China

1 articles · Updated · Fortune · Sep 22

USTDA on Sept. 14 funded a feasibility study for a new trans-Pacific subsea cable linking Thailand, the U.S. and five other Southeast Asian countries on a route that avoids the South China Sea.
More than 99% of global internet traffic runs through subsea cables, and the project is meant to improve resilience while reducing exposure to Chinese control, regulatory risk and potential conflict-related disruption.
The proposed system would also address dependence on the aging Asia-America Gateway, the only current U.S.-Thailand cable, whose repeated outages have left countries such as Cambodia and Malaysia with limited rerouting options.
Bloomberg estimates the cable could cost over $14 billion, with Thailand's state-owned National Telecom seeking funding from an international consortium as the route may pass Indonesia, Singapore, Malaysia, Vietnam and the Philippines.
The plan fits a broader U.S.-China contest over digital infrastructure, with Washington and Beijing building rival cable and AI ecosystems that could force Southeast Asian countries to balance neutrality against choosing sides.