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Media Report
June 23 , 2019
  • The Wall Street Journal reports that the Trump administration is examining whether to require that next-generation 5G cellular equipment used in the U.S. be designed and manufactured outside China, according to people familiar with the matter. The move could reshape global manufacturing and further fan tensions between the countries. A White House executive order last month to restrict some foreign-made networking gear and services due to cybersecurity concerns started a 150-day review of the U.S. telecommunications supply chain. As part of that review, U.S. officials are asking telecom-equipment manufacturers whether they can make and develop U.S.-bound hardware, which includes cellular-tower electronics as well as routers and switches, and software outside of China, the people said. The conversations are in early and informal stages, they said. The executive order calls for a list of proposed rules and regulations by the 150-day deadline, in October; so, any proposals may take months or years to adopt. The proposals could force the biggest companies that sell equipment to U.S. wireless carriers, Finland's Nokia Corp. NOK -0.19% and Sweden's Ericsson ERIC -0.70% AB, to move major operations out of China to service the U.S.

  • Bloomberg reports that Southeast Asian nations say their first draft of a code of conduct with China on the disputed South China Sea is ahead of schedule and may be finished by the end of this year.The 10-nation group, known as the Association of Southeast Asian Nations or Asean, said the two sides were moving swiftly to complete talks on the text to "reduce tensions and the risk of accidents, misunderstandings and miscalculation," according to a statement following its regional summit in Bangkok this weekend "We warmly welcomed the continued improving cooperation between Asean and China and were encouraged by the progress of the substantive negotiations towards the early conclusion," according to the statement. Still, the progress in the talks comes as the Southeast Asian nations raised concerns over China's land reclamations and other activities in the disputed area, "which have eroded trust and confidence, increased tensions and may undermine peace, security and stability in the region," according to the statement.
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