Undersea Cables Espionage: US Concerns Over Chinese Repair Ships Used in Intercepting Signals

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Mayur Joshi
Mayur Joshihttp://www.mayurjoshi.com
Mayur Joshi is a prominent forensic accounting evangelist based in Pune, India. As a contributing editor to Regtechtimes, he is recognized for his insightful reporting and analysis on financial crimes, particularly in the realms of espionage and sanctions. Mayur's expertise extends globally, with a notable focus on the sanctions imposed by OFAC, as well as those from the US, UK, and Australia. He has authored seven books on financial crimes and compliance, solidifying his reputation as a thought leader in the industry. One of his significant contributions is designing India's first certification program in Anti-Money Laundering, highlighting his commitment to enhancing AML practices. His book on global sanctions further underscores his deep knowledge and influence in the field of regtech.

According to the reports in the Wall Street Journal, U.S. officials are raising alarms about the potential security risks Chinese repair ships pose to undersea cables that carry critical internet traffic across the Pacific Ocean. These cables, essential for both commercial and military communications, could be vulnerable to tampering by vessels operated by S.B. Submarine Systems, a state-controlled Chinese company.

What Are Undersea Cables Espionage?

Undersea cables are critical infrastructure that facilitates the global internet and telecommunications network. These fibre-optic cables, laid on the seabed, carry almost all international data traffic, including internet, phone, and military communications. Stretching across oceans, these cables connect continents and ensure seamless data flow across the globe.

Undersea cable espionage involves the unauthorized interception, manipulation, or tampering with these cables to access sensitive data. This type of espionage can be conducted by state actors, criminal organizations, or other entities seeking to exploit the valuable information transmitted through these cables.

By physically accessing the cables, spies can tap into the data streams to intercept communications. This requires specialized equipment and expertise but can yield vast amounts of information.

Suspicious Ship Behavior

Repair ships tasked with fixing damaged cables can be a vector for espionage. During repairs, the cables are brought to the surface, making them vulnerable to the installation of surveillance devices or other tampering.

State Department officials have flagged the peculiar behaviour of S.B. Submarine Systems’ repair ships, which often disappear from radio and satellite tracking services, an anomaly that lacks clear explanation. This suspicious activity has sparked concerns that these vessels might be hiding their movements intentionally, potentially engaging in clandestine operations.

Repair ships can also be used to map the ocean floor and identify the locations of undersea cables. This information can be used for strategic purposes, including planning future espionage or sabotage activities.

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Silicon Valley’s Vulnerability

Silicon Valley tech giants like Google and Meta Platforms, who own and invest heavily in these undersea cables, rely on specialized construction and repair companies. Some of these companies, however, have foreign ownership, which U.S. officials worry could compromise the security of sensitive data. The Biden administration’s scrutiny of Chinese repair ships is part of a broader effort to counter China’s maritime activities and technological advances in the western Pacific.

Direct Warnings to Tech Companies

These concerns were communicated to major tech companies, including Google and Meta, highlighting the potential threats posed by Chinese entities. Discussions have specifically mentioned Shanghai-based S.B. Submarine Systems, a key player in the region’s cable repair industry.

The Importance of Transparency and Trust

The security of undersea cables is fundamentally dependent on the transparency and trustworthiness of the entities involved in their construction, maintenance, and repair. The National Security Council emphasized the importance of satellite ship tracking to support vessel monitoring and safety, underscoring the opaque behaviour of some Chinese repair ships as a significant security risk.

Despite these concerns, representatives from Google and Meta have declined to comment, and S.B. Submarine Systems has not responded to requests for comment. Some industry insiders suggest that the gaps in the company’s ship-location data could be due to technical issues like spotty satellite coverage rather than deliberate concealment. They also note that cable owners often have representatives on board repair ships, making covert activities more difficult.

Data Anomalies and Red Flags

Data from MarineTraffic, a commercial provider, shows that ships like the Fu Hai, Fu Tai, and Bold Maverick periodically vanish from tracking systems while operating in sensitive regions such as Taiwan and Indonesia. These gaps in data raise red flags for U.S. officials, who fear the ships might be engaging in activities such as clandestine tapping of data streams, reconnaissance on U.S. military communications, or intellectual property theft.

Geopolitical Tensions and Military Concerns

China’s rapid military buildup in the South China Sea has exacerbated American concerns about the vulnerability of undersea cables. U.S. intelligence has long been wary of potential espionage risks associated with the maintenance and repair of these critical infrastructures. SBSS, formed in 1995 as a Chinese-British joint venture, is now primarily owned by state-owned China Telecom, which is in the process of buying the remaining shares from a U.K.-based company.

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Mitigating Risks with Strategic Investments

The U.S. government has taken steps to mitigate these risks by funding new undersea cables and ensuring that critical repairs can be handled by trusted entities. For example, SubCom, a cable ship company owned by Cerberus Capital Management, receives significant U.S. government funding to be on standby for emergencies, ensuring that repairs can be conducted without relying on potentially compromised foreign entities.

As the geopolitical landscape continues to evolve, the security of undersea cables remains a pressing concern. U.S. officials are especially vigilant about cables that carry sensitive military data, even if encrypted, as they often pass through commercial internet lines. The ongoing scrutiny of Chinese companies like SBSS reflects the broader strategic competition between the U.S. and China, particularly in the critical domain of communications infrastructure.

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