US to Stop Telcos From Using Equipment and Services Manufactured in China for 5G Networks?

The ban on Huawei looks like only the first step among many that the Trump administration is taking against Chinese companies over concerns of national security. According to a report on the Wall Street Journal, the US government is exploring ways to impose that 5G infrastructure and equipment used in the US be designed and manufactured outside China.

Government officials are looking into the possibility of telecom equipment manufacturers developing 5G networks’ hardware and software outside China networks for use in the US . The government is currently undertaking a 150-day review of proposed rules and regulations to make this possible.

This review is part of an executive order signed off by the US government which restricts foreign-manufactured networking equipment and services over possible cyberthreats. If these proposals kick in, leading telecom companies like Nokia and Ericsson will have to move their operations out of China to continue supplying telecom equipment and services to the US markets.

The White House had previously added Huawei to its Entity List, banning the Chinese tech company from doing business with American firms without special approvals from the government.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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