US Companies May Be Forced To Make 5G Equipment Outside Of China

The United States government has recently banned its companies from purchasing and using devices manufactured by Chinese companies in the fifth-generation (5G) networks. In addition, it may require these companies to cease partnership with companies from China.

According to many sources from the Wall Street Journal, President Donald Trump’s government has thought about forcing 5G equipment to be designed and produced in any other countries but China. And therefore, telecom companies are being asked whether they are able to manufacture equipment for the US market outside of China or not.

The sources reported that these talks have been in the initial and unofficial phases. However, the executive order which reviewed the telecom supply chain will have to update proposed rules before October comes. In other words, the US government doesn’t have much time to change all factors in this race as it hopes.

At present, the White House officials have refused to give any comment on this issue.

It comes as no surprise that the United States has become too cautious in the incident concerning China and its tech companies. The US is clearly afraid that China may require suppliers and factories to set up backdoors and surveillance code into its networking hardware, and therefore the country can keep track on government bodies, individuals, as well as infrastructure in the US.

Although there is no correct evidence, neither country nor company is willing to bet its own destiny for such a future. The California-based information technology company Super Micro, similar to many other companies, has decided to move its production from the Chinese territory to ease customers in worry.

If this requirement becomes true, telecom hardware producers must face much more pressure than ever before. In fact, both Nokia and Ericsson have moved their own production from China as a way to avoid paying US tariffs on China. However, there won’t be much choice for them right now. They will have to abandon US sales or move production outside of the Chinese territory.