China blast US for alleged 'threats' of undersea cable

China says the United States is smearing Chinese companies by accusing Beijing of threatening Pacific island nations' security over a bid to build an undersea internet cable, capable of transferring far greater data than satellites.

Chinese Foreign Ministry Spokesman Wang Wenbin reacted on Thursday to a report that said Washington warned the regional countries about a security threat by Beijing.

Citing two sources, Reuters reported Wednesday that Washington made the warnings about the project to the island nations of Nauru, Federated States of Micronesia (FSM) and Kiribati.

The project, called the East Micronesia Cable project, is designed to improve communications to Nauru, Federated States of Micronesia (FSM) and Kiribati.

Chinese multinational technology company, Huawei Marine, submitted bids along with French-headquartered Alcatel Submarine Networks (ASN), for the undersea cable project, according to the sources.

The $72.6 million project is also backed by the World Bank and Asian Development Bank (ADB), the report said.

A World Bank spokesman, however, declined to “provide specific comments on the process at this time.”

According to the report, the US sent a diplomatic note to Micronesia -- an island country in Oceania -- in July, warning the firm about the project's "strategic threats."

It claimed that to build the cable, Huawei Marine and other Chinese firms are required to co-operate with China's intelligence and security services.

Micronesia's government said in a statement it is talking to international partners in the project, "some of whom have addressed a need to ensure that the cable does not compromise regional security by opening, or failing to close, cyber-security related gaps."

The third island nation involved in the project severed diplomatic ties with Taiwan last year.

US bans electric utilities from China trade

In another anti-China move, the US energy secretary signed an order on Thursday prohibiting electric utilities from buying power grid hardware from China.

Under the order, utilities that supply the defense facilities at a service voltage of 69kV or above are banned from acquiring, importing, transferring, or installing bulk power system electric equipment from China.

China and the US have been involved in disputes over a range of issues, including trade, the South China Sea, Hong Kong, and the coronavirus pandemic.

SS