The Trump administration is considering requiring that next-generation 5G cellular equipment used in the U.S. be designed and manufactured outside China, according to people familiar with the matter, a move that could reshape global manufacturing and further fan tensions between the countries.
A White House executive order last month to restrict some foreign-made networking gear and services due to cybersecurity concerns started a 150-day review of the U.S. telecommunications supply chain. As part of that review, American officials are asking telecom-equipment manufacturers whether they can make and develop U.S.-bound hardware, which includes cellular-tower electronics as well as routers and switches, and software outside of China, said people familiar with the discussions. the people said.
The conversations are in early and informal stages, the people said. The executive order calls for only a list of proposed rules and regulations by the 150-day deadline, in October, so any proposals may take months or years to adopt.
The proposals could force the biggest companies that sell equipment to U.S. wireless carriers, Finland’s Nokia Corp.
NOK -0.19% and Sweden’s Ericsson
, to move major operations out of China to service the U.S., which is the biggest market in the $250 billion-a-year global industry for telecom equipment and related services and infrastructure. There is no major American manufacturer of cellular equipment.
Popular on WSJ.com: