US may force companies to make 5G equipment outside of China or face a ban on US sales

The Trump Administration is showing their concern over Chinese Companies spying on the US with the recent consideration by them to stop 5G cellular equipment for the US being made in China. Sources claim that the Trump Administration may force many companies to avoid Chinese involvement with their products altogether, the requirements stating that all of the products intended for use in the US market must be made outside of China. The current talks are in the early stages, however the executive order that recently dictated a review of the telecommunications supply chain is demanding that there are rules set in place by an October deadline.
Whether or not there is any justification for the plans to cease production in china, the rationale would be clear. The trump Administration fears that the Chinese Government may ask factories to implement surveillance code and backdoor access into American networking hardware, which if implemented would enable the ability to spy on government bodies and individuals. There is no evidence to suggest in any way that this has happened or is happening so far, however many people are not willing to give it a chance. Companies like Super Micro have recently moved all production outside of China to ensure that wary customer’s worries are put to rest.

The huge problem that would arise if a requirement like this were to be put into place, would be the huge pressure that many telecommunication hardware companies would face. Many companies in the US are already moving their production facilities outside of china due to the implementation of US tariffs, however if the Trump Administration do move forward with plans like this, then US telecomm companies have to make a choice, either face the costs of relocating production elsewhere, or rule out any sales in the huge US market. Either way we could see some potentially big news coming from the US telecomm sector soon.

Clarence White – IEC International

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