Southeast Asia Caught Between US and China Tech Ecosystems

The Apricot Cable Bypasses Chokepoints

This project is part of a broader shift in how international data crosses Asia. The industry is moving away from congested straits and toward pathways that bypass Chinese-controlled waters. More than 570 active and planned submarine cables carry roughly 99 percent of international data traffic. Historically, many Asia-Pacific routes have funneled straight through narrow chokepoints.

Artificial Intelligence Demands Sovereign Routes

Artificial intelligence demand for predictable and sovereign data paths is driving where new fiber lines are laid, according to industry reporting. Data trains large models in one country and serves them in another. This information moves across an ocean floor that lacks extensive defense. Western and allied firms are prioritizing routes that avoid vulnerable corridors, framing the engineering as resilience against physical disruption.

Matsu Cable Cuts Prove Physical Vulnerability

Physical vulnerability is not theoretical. On Feb. 28, 2024, at least two of the three submarine cables linking Taiwan with its outlying Matsu islands were severed. Taiwan’s Chunghwa Telecom attributed the outage to Chinese fishing vessels and cargo ships.

Kuo Yu-jen, director of the Institute for National Policy Research in Taiwan, argued that the repeated outages demonstrate how easily Beijing can squeeze Taiwan’s frontline islands. He called for diversified connectivity, including satellite links and redundant cable routes.

The Seabed Becomes a Geopolitical Battlefield

Speaking on May 31, 2024, at the Shangri-La Dialogue in Singapore, Australia’s Deputy Prime Minister and Defence Minister Richard Marles told a room of admirals and generals that the seabed is a battlefield.

Alongside government warnings, U.S. cloud hyperscalers including Google, Meta, Microsoft, and Amazon are bankrolling systems such as Apricot, Echo, and Bifrost to harden the Japan-Southeast Asia-United States corridor. Meanwhile, China Unicom and China Telecom are pushing alternative routes through the Digital Silk Road.