U.S. officials might block a $300 million underwater cable project backed by Google, Facebook Inc. and a Chinese partner over Justice Department fears that Beijing could use the 8,000-mile link for spying.
The Justice Department, which is leading a multiagency panel reviewing the effort, has registered "staunch opposition" to the Pacific Light Cable Network, The Wall Street Journal reports.
The panel, known as Team Telecom, has raised concerns about the project's Chinese investor, Dr. Peng Telecom & Media Group Co., and its ties to Beijing's government.
The Pacific Light Network would link the U.S. to parts of mainland China — and, ultimately, Hong Kong, Malaysia, Indonesia, and the Philippines.
It promises "faster connections for its investors on both sides of the Pacific," the Journal reports.
Most of the cable has been draped across the ocean floor between Los Angeles and Hong Kong under temporary work permits that have to be re-approved next month.
But FCC must grant a license to the Pacific Light project in order for the work be completed. It generally follows the recommendations of Team Telecom on projects that raise national-security concerns.
Other members of the ad hoc group include the Homeland Security and Defense departments, the Journal reports.
The project comes amid escalating tensions between the U.S. and China, including U.S. efforts to block Huawei Technologies Co., Beijing's largest telecommunications company, from next-generation mobile networks.
Huawei has been in partnership with Dr. Peng since 2014 to research cloud computing, artificial intelligence and 5G mobile technology, the Journal reports.
Dr. Peng, China's No. 4 telecom provider, has interests in media, telecom, and surveillance technology.
According to the Journal, Google's owner, Alphabet Inc., and Facebook teamed up in 2016 to provide U.S. financing for the network.
The Hong Kong portion involved a company who later sold its stake to Dr. Peng.
Dr. Peng's chairman, Yang Xueping, is a former Chinese government official, the Journal reports.
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