Like Huawei What happens, If European companies make 5G equipment

Like Huawei What happens, If European companies make 5G equipment in the middle

It is reported that the US is considering withdrawing China's 5G (fifth-generation) telecom equipment from the domestic market. Currently, only the use of equipment from Chinese companies such as Huawei is limited, but in the future, Western companies such as Sweden Ericsson and Finland will be able to exclude 5G equipment made in China. It is a message that the US telecom equipment market could completely ban 'Made in China' products. 

The Wall Street Journal quoted sources as saying on Monday (December 23) that the "Donald Trump administration is considering making all the design and production out of China for 5G communications equipment used in the United States". 

According to the WSJ, White House officials have already asked global telecom equipment manufacturers whether they can produce US export hardware outside of China. The White House's list of equipment includes components that can collect data, including cell phone base station electronics, routers, switches, and software.

The US administration 's move to exclude Chinese - made 5G equipment (like Huawei 5g modem) is in line with the administration' s mandate to secure information and communication technology and service supply chains that restrict foreign - made communications equipment and services that could pose a threat to national security. The White House issued an executive order last month, requiring it to establish an action plan within 150 days. 

The United States has been concerned that not only communication equipment manufactured by Chinese companies such as Huawei but also all the communication equipment produced in China are potentially exposed to security risks. 

Accordingly, it is analyzed that the western companies restrict the transactions of Huawei and US companies in the first stage, and the second stage is to examine the way of the Western companies to exclude the communication equipment produced in China from the US market. 

Michael Wesley, a member of the US Congressional Advisory Council on Economic and Security Review, told the WSJ, "The biggest national security concern is China-owned companies, but if the equipment is manufactured by a company operating in China, security risks can not be ruled out.". 

It is interpreted that the move of the United States to eliminate 5G equipment from China is also intended to intend to unite China in the global communication equipment supply chain. 

When the US government's idea is realized, Ericsson and Nokia, the world's second- and third-largest telecom equipment makers, are likely to transfer production facilities outside of China for the US market.