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Amid trade war, US considers ban on 5G technologies made in China

US to ban 5G technologies from China including Huawei
Once official, this move could see telecom giants such as Nokia and Ericsson move their production units out of China

The US is considering a ban on all 5G technology equipment made by Huawei or any other producer in China amid concerns that the same equipment could be used by the Chinese to spy over the United States of America, the Wall Street Journal reported.

As noted by the Wall Street Journal, the US decision to ban Huawei or any China made 5G technology could force telecom giants such as Nokia and Ericsson to move their operations out of China or risk losing the US market completely.

After the 150-day review of the supply chain called by President Donald Trump, the US government will ask telecom companies operating in the US if they can develop hardware related to the next-generation 5G cellular technologies outside of China.

The administration has also banned Chinese telecom giant Huawei Technologies, one of the largest telecommunications equipment producers, from the US suspecting that the company has ties with the Chinese military and intelligence agencies.

The US also accuses Huawei of trade theft, fraud, and holds it accountable for the violations of Iran sanctions. Trump’s administration has also prevented Huawei from purchasing any American technology. According to reports, CEO and founder Ren Zhengfei recently stated that the company expects to lose $30 billion in revenue.

The Wall Street Journal also highlighted that Trump’s administration is considering placing China on its Foreign Adversaries lists.

Despite talks being in its early phrase, the US government is in talks with telecom companies and other Asian countries over possible relocation of equipment production.

Eric Xu representing Huawei told CNBC that US’s ambitions of becoming a leader in 5G mobile internet will not become a reality if they continue to block Huawei from the American market.

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