U.S. Officials Warn of $10 Trillion Daily Threat from Chinese Undersea Cable Operations Ahead of Trump-Xi Talks

Bearish (-0.8)Impact: High

Published on May 10, 2026 (4 hours ago) · By Vibe Trader

A former U.S. intelligence official has raised alarms about the vulnerability of undersea cables to potential attacks by adversaries such as China, warning that these cables support up to $10 trillion in daily financial transactions and carry 99% of global data traffic [1]. Andrew Badger, chief strategy officer at Coalition Systems and a former Pentagon official, stated that adversaries like China and Russia are investing significantly more resources into targeting undersea infrastructure than the U.S. and its allies are dedicating to defense, creating a substantial asymmetric threat [1].

Badger's warnings come as President Donald Trump is set to meet with Chinese President Xi Jinping in Beijing for talks expected to focus on trade, artificial intelligence, and Taiwan [1]. Taiwan has reported approximately 30 subsea cable incidents in recent years, including one where Chinese vessels allegedly severed cables, resulting in months-long communication outages [1]. In April, China's Ministry of Natural Resources confirmed a successful deep-sea mission testing an advanced 'electro-hydrostatic actuator,' a device reportedly capable of slicing through armored submarine cables at depths of 3,500 meters [1].

Senate Republican Whip John Barrasso and Senator Jeanne Shaheen introduced the bipartisan Strategic Subsea Cables Act of 2026 in April, aiming to bolster the security and resilience of critical undersea infrastructure [1]. Barrasso emphasized the importance of undersea cables for internet traffic and financial transactions, reiterating the $10 trillion daily figure [1].

The article highlights that similar suspicious disruptions have occurred in Europe and elsewhere, raising concerns about coordinated 'gray-zone' operations intended to test Western responses while avoiding open conflict [1]. Badger described these actions as 'hybrid warfare in its purest form,' warning that a coordinated strike on American undersea infrastructure could disrupt the internet, banking, energy markets, and military communications, with incalculable dollar costs and potential for widespread chaos and political instability [1].

CONCLUSION

The threat to undersea cables from adversaries like China is being taken seriously by U.S. officials, with warnings of potentially catastrophic economic and security consequences. Legislative efforts are underway to strengthen cable security, but the risk of disruption remains a significant concern as high-level U.S.-China talks approach.

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