Undersea Cable Threat in China Sparks $10 Trillion Concerns Ahead of Trump-Xi Talks

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SouthernWorldwide.com – A former U.S. intelligence official has issued a stark warning regarding the vulnerability of the U.S. economy to adversaries, particularly China, who are capable of targeting undersea cables to inflict significant economic damage.

These vital cables are responsible for transmitting 99% of global data and underpin daily financial transactions estimated to be worth up to $10 trillion.

The warning comes at a critical juncture, as President Donald Trump is scheduled to meet with Chinese President Xi Jinping in Beijing. The discussions are anticipated to cover key areas of contention, including trade, artificial intelligence, and the status of Taiwan.

Taiwan, a persistent source of tension between the U.S. and China, has experienced a notable number of incidents involving subsea cables. Reports indicate approximately 30 such incidents in recent years, with one instance where Chinese vessels were allegedly responsible for severing cables, leading to prolonged communication disruptions.

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Andrew Badger, chief strategy officer at defense tech startup Coalition Systems and a former Pentagon official, emphasized the nation’s reliance on this “fragile nervous system of subsea cables for modern life.” He stated that adversaries are actively seeking to transform the ocean floor into a battlefield.

Badger highlighted the asymmetric nature of this threat, noting that China and Russia are investing considerably more resources in attacking undersea infrastructure compared to the defensive measures taken by the U.S. and its allies.

“They’ve identified one of our greatest vulnerabilities, and we haven’t caught up,” Badger explained. “A coordinated strike on American undersea infrastructure could fundamentally disrupt our way of life — the internet, banking, energy markets, and military communications all run through these cables. The dollar cost is almost incalculable, and the real damage would be the chaos and political instability that would follow.”

Badger’s concerns echo recent legislative efforts. In April, Senate Republican Whip John Barrasso and Senator Jeanne Shaheen introduced the bipartisan Strategic Subsea Cables Act of 2026, aimed at bolstering the security and resilience of critical undersea infrastructure.

This proposed legislation underscores the growing recognition of the importance of these cables.

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“Undersea cables are important for a variety of reasons,” Senator Barrasso stated. “They carry 99% of the world’s internet traffic. They also support $10 trillion in financial transactions each and every day.”

Further fueling these concerns, China’s Ministry of Natural Resources confirmed in April a successful deep-sea mission involving an advanced “electro-hydrostatic actuator.” This device is reportedly capable of cutting through armored submarine cables at depths of up to 3,500 meters, according to reports.

Similar suspicious disruptions have been observed in Europe and other regions, leading to concerns about coordinated “gray-zone” operations. These actions are believed to be designed to test Western responses without crossing the threshold of open conflict.

“This is hybrid warfare in its purest form, designed to weaken the adversary below the threshold of declared war,” Badger commented, adding that incidents like anchors dragging across the seabed can offer plausible deniability.

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“Cables give Beijing and Moscow the ability to inflict devastating economic chaos almost at will,” Badger warned. “This gives both nations tremendous strategic leverage over the U.S.”

Badger also suggested that China could potentially target American undersea cables as a means to deter U.S. involvement in Taiwan.

“Beijing could simultaneously target cables landing in the U.S., not to win militarily, but with the goal of breaking the American public’s will to intervene in Taiwan,” he posited.

China asserts sovereignty over Taiwan, while the U.S., Taiwan’s primary unofficial ally, provides military support under a law that mandates assistance in the island’s defense.

The Taiwan Strait is also a crucial pathway for resources essential to the advancement of artificial intelligence.

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Anniki Mikelsaar of the Oxford Internet Institute noted that the increasing use of AI translates to “rising capacity requirements on submarine cables.” She also pointed out that not all cable damage incidents are attributable to foreign adversaries, citing an estimate of 150 to 200 cable breaks globally per year, the majority of which are accidental.

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