Plans to build undersea communications cables between Pacific Island nations stalled after the United States reported a China-based company was bidding on the project and could pose national security threats, according to a new report.
The project would have connected the island nations of Nauru, Kiribati, and the Federated States of Micronesia better. The World Bank reportedly backed the $72.6 million plans, but two sources told Reuters no contract was granted after the U.S. raised issues with the involvement of the Chinese communications company.
Sources said one of the three companies that submitted a bid was HMN Technologies, formerly known as Huawei Marine Networks. One source said no contract was awarded because there was not a way to remove HMN as one of the bidders on the project.
“Given there was no tangible way to remove Huawei as one of the bidders, all three bids were deemed non-compliant,” Reuters quoted an unnamed source as saying.
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The undersea connection project would have also created a link with Guam, a U.S. territory with vital military facilities, raising alarms among officials, who viewed its construction as a security threat.
The World Bank told Reuters it was working with the nations’ governments to find another solution.
A spokesperson for the Chinese foreign ministry said: “As a matter of principle, I want to emphasize that Chinese companies have always maintained an excellent record in cyber security.”
President Joe Biden‘s administration has attempted to follow a similarly cautious approach regarding network security infrastructure raised by the Trump administration. U.S. and European Union officials are planning to form a council that would allow the transatlantic alliance to create a common market for technology divorced from Chinese espionage tactics and other security threats.
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The Washington Examiner contacted HMN Technologies but did not immediately receive a response.
