The Federated States of Micronesia will tap a U.S. funding facility to construct a Pacific undersea communications cable, two sources said, after rejecting a Chinese company-led proposal that was deemed a security threat by U.S. officials.
The United States has taken great interest in several plans in recent years to lay optic fiber cables across the Pacific, projects that would bring vastly improved communications to island nations.
The undersea cables have far greater data capacity than satellites, leading Washington to raise concerns that the involvement of Chinese firms would compromise regional security. Beijing has consistently denied any intent to use cable infrastructure for spying.