Indonesian Political, Business & Finance News

America Growing Paranoid, Chinese Products Totally Blocked

| Source: CNBC Translated from Indonesian | Trade
America Growing Paranoid, Chinese Products Totally Blocked
Image: CNBC

The United States is increasingly serious about severing its dependence on foreign products. The latest move by the local government is to ban the use of routers made abroad. The Federal Communications Commission or FCC in the US states that routers made outside the US pose security risks. The latest FCC rule includes models of foreign-made network routers on the Covered List, quoted from Engadget, Thursday (26/3/2026). For information, the Covered List is a list of communication devices deemed to pose risks to national security. The FCC provides exemptions for routers that were already purchased previously. These devices can still be used by the public. In addition, retailers can still sell foreign router models that have obtained prior FCC policy approval. Furthermore, companies owning foreign router products can actually request to be exempted from the list. They can submit conditional agreements to the Department of War or the Department of Homeland Security. However, this means the companies must include plans to move production to the US. At least for plans for part of their production. Engadget notes that there are almost no or no well-known router brands made in the US at all. This appears to be a challenge and a source of confusion for companies with production facilities abroad. Because this new policy does not only impact router companies from China, which is the main rival of the US, but also a number of US companies will be affected by the rule. Companies like NetGear, Eero, and Google Nest have production facilities in Asia. This occurs even though the three companies have headquarters in the US. Some of that manufacturing activity is in Taiwan, which in this case has good relations with the US. However, the fate of these three companies is not yet known. This new step is part of the White House’s strategy last year, namely that the US must not rely on foreigners for core components. Including from raw materials, spare parts, to finished products.

View JSON | Print