In a move that could continue to fan the flames of the trade war between the U.S. and China, the Trump administration is examining whether to require that next-generation 5G cellular equipment used in the U.S. be designed and manufactured outside China.
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The move could reshape global manufacturing according to the Wall Street Journal.
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The decision is based on cybersecurity concerns and an executive order reportedly started a 150-day review of the U.S. telecommunication supply chain.
This involves asking telecom-equipment manufacturers whether they can make and develop equipment like routers and switches, and software outside of China, people familiar told the Journal.
After China’s Huawei, Nokia and Ericsson are the equipment makers. Based on the companies’ annual reports.
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The U.K. and Japan also are each conducting separate telecom supply-chain reviews, according to the Journal.
The White House declined to confirm or comment on specific discussions.
