situation report

Jun 24, 2019 | 13:11 GMT

1 min read

U.S.: White House Considers Ban on Chinese Production of 5G Equipment for U.S.

What Happened: The White House is mulling an order that would ban the use of any Chinese-made equipment on U.S. 5G networks, regardless of where the company is from, The Wall Street Journal reported June 23.

Why It Matters: If the U.S. administration enforces the measure, European companies like Ericsson and Nokia would be forced to move their production of U.S.-bound 5G equipment to plants outside China. Additionally, any shifts in supply chains to the United States could become permanent — unlike temporary trade tariffs.

Background: U.S. President Donald Trump and Chinese President Xi Jinping could reach a deal at the G-20 later this week to reduce tariffs in their trade war, yet the parallel tech war — which centers on U.S. fears that Beijing can use Chinese-built technology for espionage — is unlikely to abate in the near term.

Read More:

Why Europe Won't Shut the Door on Huawei (June 13, 2019)

What Does the New Qualcomm Ruling Mean for 5G and the U.S.-China Tech War? (May 23, 2019)

As the U.S.-China Tech War Rages on, the Electronics Industry Braces for Impact (March 29, 2019)

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