China is pushing for more control over submarine cable projects in the South China Sea and has withheld approval for a project linked to it Facebook parent Metaplatforms Inc META For several months.

What happened: The cable, dubbed SJC2, which will connect Japan to Singapore but also to Taiwan and Hong Kong, has been delayed for more than a year due to Chinese objections and permitting issues. reported financial times.

The consortium building SJC2 includes Mark Zuckerberg-led meta along with China mobile device and Taiwan’s Chunghwa Telecom.

The permit was reportedly held up for months in the territorial waters around Hong Kong as authorities raised concerns the contractor could engage in espionage or install equipment in the waters, a person familiar with the matter told FT.

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Why it matters: China’s enforcement actions in its claimed waters through the so-called “nine-dash line” follow Beijing’s ban on international projects and Chinese fears that cables could be a front for espionage, FT noted.

In waters between 12 nautical miles and 200 nautical miles from land – an area known as a country’s “exclusive economic zone” – cable laying generally does not require a permit.

China has reportedly complicated the process of obtaining permits within the 12-mile area and has begun seeking permits to lay cables beyond 12 miles in its claimed territorial waters.

In response, submarine cable consortia are looking for new routes that bypass China’s claimed waters, FT reported, citing examples of “Apricot” and “Echo” projects bypassing the South China Sea by circumnavigating Indonesia.

Price promotion: On Tuesday, Meta shares closed up 7.25% in the regular session at $194.02, falling 0.2% in after-hours trading Benzinga Pro data.

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