TP-Link, one of the most widely used router brands in the United States, is under growing scrutiny from the US government.
The Chinese company had carved out its US division into a separate entity with its own administration and production site outside China after political pressure from Washington. But US authorities don’t trust it and are now reviewing a potential ban — with consequences for millions of households.
🇻🇳 Vietnam as the argument: TP-Link points to its factory in Hai Phong, which has been producing products for the US market for years, as a response to the allegations. But this very location is now raising new doubts.
🏗️ State-linked construction: Investigations show that the Chinese state construction giant CSCEC was involved in expanding the facility. The United States classifies the company as “linked to the military.”
📦 Final assembly instead of decoupling: TP-Link says hardware for the US has come from Vietnam since 2018. Public data shows, however, that most components are still made in China and only assembled in Vietnam. Local parts account for only a very small share.
🔐 Security agencies grow nervous: Several US agencies see the China connection as a risk for sensitive data. The Department of Commerce has an assessment that could lead to sales restrictions or even a ban on TP-Link products.
Reality check: Vietnam instead of China?
Boom without capacity: Vietnam is growing fast, but does not match China’s production scale or infrastructure. Companies quickly hit limits in land, energy and labor.
Deep entanglement: Many factories in Vietnam still depend on Chinese suppliers, capital and construction firms. Even in the so-called alternative location, very little works without China.
Political wish meets reality: For the United States, Vietnam appears to be a safer location. In practice, it often amounts to a geographic shift of Chinese supply chains, not a strategic decoupling.
Background
TP-Link was founded in 1996 in Shenzhen. The company has been on the radar of US security agencies for years, partly due to cyberattacks in which TP-Link devices were compromised.
Sources: The Register, SL Guardian
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