The U.S. economy faces significant threats from rivals like China, especially regarding undersea cables that have the potential to cause major disruptions, a former intelligence official cautioned. These cables are crucial, carrying 99% of global data and facilitating up to $10 trillion in daily financial transactions.
Andrew Badger, Chief Strategy Officer at a defense tech startup, shared these insights as President Trump and Chinese President Xi Jinping convene in Beijing, primarily to discuss trade and artificial intelligence matters, alongside tensions surrounding Taiwan. Recently, Taiwan reported various incidents involving submarine cable disruptions, including allegations that a Chinese vessel severed cables, leading to prolonged communication outages.
Badger emphasized the critical role of undersea cables, stating, “America relies for modern life on a fragile nervous system of undersea cables.” He expressed concern that adversaries like China and Russia are investing significantly more resources in targeting this infrastructure than the U.S. is in protecting it. He pointed out that a coordinated attack could severely disrupt key systems like the internet and financial services, posing significant risks to stability.
His comments followed the introduction of a bipartisan bill, the Strategic Submarine Cable Act of 2026, aimed at bolstering the security of these crucial infrastructures.
Highlighting the strategic importance of undersea cables, Badger noted their role in global communication and finance. This issue isn’t just theoretical; earlier this year, China successfully tested a device capable of damaging these cables at great depths, raising alarms about potential sabotage.
Badger categorized these actions as “hybrid warfare,” intended to undermine opponents without crossing the line into overt conflict. He referenced activities that might appear innocuous, like anchors dragging across cables, which allow for plausible denial should accusations arise.
He further alertly noted that China could use targeted disruption of submarine cables as a tactic to sway public opinion against U.S. involvement in Taiwan, seeing this as a way to cause unrest without direct military engagement.
While China views Taiwan as its territory, the U.S. supports Taiwan’s defense under existing law, making the region a focal point for geopolitical tension. The Taiwan Strait is increasingly vital, especially with the rise of artificial intelligence, which demands more from existing cable infrastructure. Interestingly, not all cable disruptions stem from foreign threats; many are accidents, highlighting the complexity of this issue.
