The world's largest router maker is in the US's sights

The Trump administration may consider banning the sale of TP-Link products in the US over national security concerns.

A TP-Link Wi-Fi router model. Photo: WSJ .

According to Bloomberg , the Trump administration is considering restricting TP-Link's operations in the US. This is a Chinese company specializing in manufacturing network equipment, notably with its Wi-Fi router product line.

Following an investigation into TP-Link's ties to China, the US government is considering making a "preliminary determination" that the company poses a national security threat.

The conclusion is said to have been prepared for a long time, but the review process has only been accelerated recently. If the results are unfavorable, TP-Link faces the risk of being restricted or banned from operating in the US.

TP-Link's inclusion in the US's sights comes ahead of a meeting between President Donald Trump and Chinese President Xi Jinping, scheduled to take place at the end of October.

This week, China imposed new restrictions on rare earth exports, which hardliners say is a softening of Trump’s stance in pursuit of a trade deal with China.

TP-Link is under intense scrutiny in the United States, with lawmakers from both parties expressing concerns that the company’s equipment is frequently hacked, creating vulnerabilities that Chinese hackers can exploit. In May, several Republican lawmakers called for a ban on TP-Link products in the United States.

In 2019, Mr. Trump signed an executive order to open an investigation into TP-Link. Accordingly, the US Department of Commerce has the right to ban the operations of information technology and communications companies if they associate with foreign competitors, causing an “unacceptable risk” to national security.

In an official statement, a TP-Link representative said the company will continue to work closely with the US Department of Commerce to address concerns, including mitigating security risks.

“We believe that the US Department of Commerce's review will be completed with assurances about the security of TP-Link's operations and products,” the person said.

TP-Link is privately held. Shares of the company rose 11% after the news broke on October 9, according to Bloomberg .

A TP-Link factory in Shenzhen (China). Photo: Zuma Press .

Founded in China in 1996, TP-Link is trying to shake off the label of a “Chinese company.” Last year, the company split into two separate entities, one headquartered in California (USA), the other in Shenzhen (China).

While the US unit has pledged to invest heavily in the domestic market, data from Bloomberg shows the company still has significant operations in mainland China.

Before the split, TP-Link was the world's largest supplier of consumer Wi-Fi devices, according to IDC . The company's routers are widely sold at retailers like Amazon and Best Buy, and are popular in homes and small businesses.

US officials say TP-Link routers are among a number of brands (including some US ones) exploited by Chinese state-backed hackers, such as Volt/Salt Typhoon, which are believed to be launching large-scale attacks targeting critical US infrastructure.

There is currently no evidence that TP-Link was involved in the attacks. A company representative admitted that it could not verify how the devices were exploited.

In addition to the Commerce Department's investigation, the US is also opening a criminal antitrust investigation, revolving around TP-Link's pricing strategy and the company's security threat in the US as its market share expands.

Source: https://znews.vn/hang-router-noi-tieng-lot-tam-ngam-cua-my-post1592505.html