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The US government is weighing a ban on a popular brand of Chinese-made home internet routers over fears that their links to cyberattacks pose a national security risk, according to a report.
TP-Link, the manufacturer of high-speed cable modems, routers, range extenders and smart home devices that has grabbed a 65% market share in the United States, is the subject of several investigations being overseen by a number of federal agencies, according to the Wall Street Journal.
The Departments of Commerce, Defense and Justice have all opened probes into the company, people familiar with the matter told the Journal.
A ban on sales of TP-Link products could come sometime next year — after President-elect Donald Trump takes office, the Journal reported.
A division of the Commerce Department has even gone so far as to issue a subpoena to TP-Link, according to the report.
TP-Link is the top choice on Amazon, and powers web communications for the Defense Department and other federal agencies, according to the report.
The company has won market dominance partly through lower prices, as its routers are cheaper than competitors’ — often by more than half, according to market data.
Concerns over Chinese-made routers came to the fore in October when Microsoft published a cybersecurity report that found that a network of hackers uses compromised devices manufactured by TP-Link.
The report alleged that Chinese-based cybercriminals used routers made by TP-Link to launch ransomware and other cyberattacks.
US government investigators believe that TP-Link routinely fails to address vulnerabilities in its products that are shipped to customers who use the routers for both home and business purposes, according to the Journal.
Hackers are then able to exploit the vulnerabilities to carry out ransomware attacks and other cybercrimes, it has been alleged.
When cybersecurity experts point out the flaws in TP-Link routers, the company declines to engage with them, according to the Journal.
TP-Link has its headquarters in Shenzhen, China, while maintaining a legal office based in California.
“We welcome any opportunities to engage with the US government to demonstrate that our security practices are fully in line with industry security standards, and to demonstrate our ongoing commitment to the US market, US consumers, and addressing US national security risks,” an office spokeswoman told the Journal.
The Post has sought comment from the TP-Link office.
The Biden administration’s lingering concerns over Chinese-made technology and the potential threat it poses to American interests have fueled efforts to restrict imports from the mainland.
The federal government is set to initiate a trade investigation into Chinese semiconductors in the coming days — a probe that could result in tariffs or other measures on older-model chips and the products containing them, people familiar with the matter told Bloomberg News.
In the last two years, the administration has restricted exports of advanced semiconductors made by American and allied technology to China.
China responded by manufacturing older, cheaper semiconductors — prompting worry that they will flood the global market with inexpensive chips that will undercut US-based and Western competitors, according to Bloomberg News.
In May, the Biden administration announced it will boost tariffs on Chinese-made legacy chips from the current 25% rate to 50% by next year.
An embassy spokesperson told the Journal that the US was using national security as a pretext to “suppress Chinese companies” and that Beijing would “resolutely defend” the interests of Chinese firms.