US Weighs Action Against China-Connected Router Giant TP-Link
The Trump administration is considering whether to take a major step to restrict the U.S. operations of TP-Link Systems Inc., a Chinese-connected router maker whose Wi-Fi equipment is popular in the American market, according to people familiar with the matter.
The US government is considering whether to issue a “preliminary determination” that TP-Link poses a national security threat, following an investigation into TP-Link’s dealings with China that began last year, sources said. The assessment has been ready for some time, but there has been intense activity in recent weeks to advance it, according to sources. Such a finding would bring TP-Link one step closer to potentially having its U.S. operations restricted or banned.
The increased focus on TP-Link comes ahead of a meeting between President Donald Trump and Chinese leader Xi Jinping scheduled for the end of the month. This week, China strengthened leverage ahead of negotiations by announcing new restrictions on rare earth exports. Meanwhile, U.S. advocates for a hard line on China fear Trump will soften his approach toward Beijing as he pursues a trade deal.
TP-Link faces increasing scrutiny in Washington over its ties to China; Lawmakers from both parties are voicing concerns that their wireless equipment could be exploited by Chinese hackers following a series of attacks on their routers. In May, more than a dozen Republican lawmakers, including Senate Intelligence Committee Chairman Tom Cotton, called for a U.S. ban on further sales of TP-Link products.
Trump signed an executive order in 2019 creating authority to investigate TP-Link, but it has rarely been invoked. The law gives the Commerce Department broad powers to ban information and communications technology firms with ties to foreign adversaries from operating in the United States if they are determined to pose an “unacceptable risk” to national security.
TP-Link will have the opportunity to appeal any findings before a final decision is made.
A TP-Link spokesperson said in a statement that the company “will continue to work closely with Commerce to resolve any concerns, including mitigating risks that Commerce may indicate.” “We are confident that Commerce’s review will result in recognition of the security of TP-Link’s operations and products.”
White House spokespeople did not respond to requests for comment. A Commerce Department spokeswoman said the agency does not comment on active enforcement matters or confirm or deny the existence of any pending investigations.
Founded in China nearly three decades ago, TP-Link has recently stepped up efforts to distance itself from its roots. The company last year completed a split into two separate entities: an American unit headquartered in Irvine, California, and a Chinese unit headquartered in Shenzhen. A Bloomberg News investigation published in April found that the US-based organization still had significant operations in mainland China, despite promising to make significant investments in the US.
Before the split, TP-Link was the world’s largest provider of consumer Wi-Fi equipment, according to market research firm IDC. Routers that transfer information from the Internet to devices such as computers and smartphones are manufactured by Amazon.com Inc. and Best Buy Co. It is widely sold through retailers such as and can be found in homes and small businesses across the country.
TP-Link routers were among several brands (including American ones) exploited by Chinese state-backed hackers who launched massive Volt and Salt Typhoon attacks targeting US critical infrastructure, US officials said.
There is no evidence that TP-Link was complicit in any of the attacks, and the company said it could not confirm how its devices were affected.
In addition to the Commerce investigation, the U.S. is pursuing a criminal antitrust investigation into TP-Link’s pricing strategies and whether the company’s growing U.S. market share poses a threat to national security, Bloomberg reported in April.
With assistance from Shawn Donnan, Catherine Lucey, and Jennifer A. Dlouhy.
This article has been generated from an automated news agency feed without modifications to the text.
