US angers China by warning pacific nations of '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.

China braces for

The top US spy chief has presented China as "the greatest threat to democracy and freedom worldwide since World War II.”

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 told Reuters 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 US note to the island country followed an earlier warning from the Nauru government about the project, the sources said. Nauru is a Pacific ally to Taiwan.

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

The US has constantly accused China of using Huawei Technologies's products for spying. China has consistently denied the allegations.

The firm, which is a global telecom equipment maker, has been subjected to repeated rounds of US sanctions, so far.

Washington lists Huawei Marineon on its blacklist, which restricts the sale of US goods and technology to the company.

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.

"It is imperative we secure the (bulk power system) against attacks and exploitation by foreign adversaries,” said Energy Secretary Dan Brouillette.

He described the latest ban as a move to “diminish the ability of our foreign adversaries to target our critical electric infrastructure.”

The ban takes effect in January, only days before the inauguration of President-elect Joe Biden.

China declares bid to uphold rights of firms against US sanctions

China announced plans to uphold rights of Chinese companies against unilateral US sanctions.

President Donald Trump signed a related executive order back in May that had been expected to put barriers on some power grid imports from China and Russia.

Trump’s tough stance on China has taken relations with Beijing to their lowest point in decades, over the past four years.

Biden said earlier that his priority on China was to build an alliance and pursue trade policies that tackle China’s “abusive practices.”

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.

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