The U.S. is considering a requirement that next-generation 5G cellular technology for domestic use be made outside of China, the Wall Street Journal reported on Sunday, citing sources.

The shift could force telecom giants like Nokia and Ericsson to move production outside of China in order to continue providing equipment to the U.S., the world’s largest market for telecom equipment and services, the Journal said.

President Donald Trump on May 15 declared a national emergency over threats on U.S. technology and blocked transactions that involve technology that “poses an unacceptable risk to the national security of the United States.”

The administration then essentially banned Chinese telecom giant Huawei Technologies from the U.S. amid issues about that Huawei’s gear and telephones can be utilized to spy over wi-fi networks, which the Chinese language firm has repeatedly denied.

The transfer to require gear be made outdoors of China would come at a time of heightened commerce tensions between the 2 international locations.

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Underneath the 150-day evaluate of the provision chain known as for in Trump’s government order, the U.S. authorities will ask telecom firms if they’ll develop like routers and switches, and software program outdoors of China, the Journal mentioned, citing folks acquainted with the matter.

The Journal mentioned the conversations are in “early” and “casual” phases.

The Wall Road Journal’s story may be discovered here.

©CNBC is a USA TODAY content material companion providing monetary information and commentary. Its content material is produced independently of USA TODAY.

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