Suppliers of equipment used in 5G networks in the US could be forced to manufacture it outside of China, The Wall Street Journal reported, the latest sign of ramping trade tensions between the two countries.
The news comes as US president Donald Trump and president of the People’s Republic of China Xi Jinping are scheduled to meet at the G20 summit this week to discuss the ongoing trade dispute.
Days before the slated discussions, reports emerged US officials were considering slapping tighter restrictions on the importation of telecommunications network equipment manufactured in China.
The mooted law would require all equipment related to domestic 5G networks including routers, switches and technology in towers to be made outside of China.
In addition to the direct impact on companies based in China, several of which are already banned, the likes of Nokia and Ericsson also have facilities in the country and would be forced to ensure anything destined for the US was produced elsewhere.
The move would be a result of a review of the country’s telecommunications supply chain taking place following an executive order from the White House.
Last week, the US also added more China-based companies to its list of businesses unable to receive a range of goods from suppliers in the US.
Ahead of the meeting of two leaders at the G20 Summit in Osaka, South China Morning Post reported comments from China’s vice-minister of commerce Wang Shouwen, urging compromise between both sides.
Wang said the two sides needed to “meet halfway” by making concessions to reach an agreement on trade. He also called for the latest round of restrictions on China’s companies to be removed.Subscribe to our daily newsletter Back