New regulations are limited to new models, stock products are not affected, but Chinese brands such as TP-Link, which account for more than 60% of the U.S. market, face huge challenges

"The router is banned!"

On March 23, the Federal Communications Commission (FCC) dropped a bombshell:On the grounds of national security, all foreign-made consumer-grade home routers have been formally included in the regulated list, prohibiting new models from obtaining FCC certification, meaning that non-U.S.-made home routers will not be able to legally enter the U.S. market for sale in the future.

The news quickly blew up in cross-border and tech circles. Routers, a key device for connecting home networks, have long been dominated by Chinese brands - it's estimated that theChinese Brands and OEMs Hold at Least 60% of US Home Router Market Share.. Where do these businesses go under the new regulations?

Today's article gives you the lowdown: what exactly is banned under the new rules? Why is it suddenly blocked? What should affected companies do?

First, the core of the new regulations: only prohibit new models, stock sold as usual

According to the FCC's official announcement, the core points of this new regulation are as follows:

Scope of control: All consumer-grade home routers manufactured in non-USA.

Restricted Content: FCC certification approval for brand new models only.. Inventory routers that have been certified, are on sale, or have been purchased by usersunaffectedThe retailer can continue to sell existing stock, imported approved models.

Exemption mechanisms: The U.S. Department of Defense (DoW) or Department of Homeland Security (DHS) may issue conditional approvals for specific routers that are exempt from the ban after demonstrating that they do not pose an unacceptable national security risk.

This means that the new regulation is not a "blanket" blocking of all foreign routers, but rather a "blanket" blocking of all foreign routers.Blocking access to the U.S. market for new modelsFor brands that have already established themselves in the U.S. market, existing products can continue to be sold. For brands that have already established themselves in the U.S. market, existing products can continue to be sold, but if they want to launch new products in the future, they must get a special "conditional approval" pass.

Second, why the sudden closure? The White House identified "two major risks".

In its announcement, the FCC made clear that the decision was based on the findings of a White House-led interagency assessment of the executive branch. The assessment identified two major "fatal risks" associated with foreign-made home routers:

Supply Chain Vulnerabilities: could be a breakthrough in undermining the U.S. economy, critical infrastructure and defense security;

Serious cybersecurity threats: There is a risk that it could be exploited for malicious purposes, thereby severely damaging U.S. critical infrastructure and directly jeopardizing the safety of the U.S. population.

The announcement also specifically mentioned that foreign-made routers have been repeatedly used by malicious actors to attack U.S. home networks, commit espionage, and steal intellectual property, and named cyberattacks involving "Volt Typhoon" and "Salt Typhoon". --Although these allegations have previously been refuted by the Chinese side on numerous occasions.

President Trump's quote from the National Security Strategy 2025 may summarize the undertones of this decision:"The United States must not rely on any outside force to provide the core components - from raw materials to parts to finished products - needed for defense or the economy."

U.S. Home Router Market Pattern: Chinese Brands Account for Half of the Market

In the U.S. market, home router brands are highly concentrated, with TP-Link, NETGEAR and Linksys in a three-pronged position, with a combined market share of more than 80%.

TP-Link: A purely Chinese brand, the absolute leader in the North American home routing market.Shipment market share 50% or more, the company most affected by the ban. It is worth noting that in 2024, TP-Link has been split into TP-Link Systems, headquartered in the United States (headed by Zhao Jianjun), and P&L Technology, headquartered in China (headed by his brother), and its products are mainly manufactured in its Vietnam factory. But even so, it has not been able to escape the "foreign-made" blockade.

NETGEAR: Founded in 1996, American Network Equipment Corporation is a purely domestic American company.

Linksys: Founded in California in 1988, the US-based brand was later acquired by Cisco and eventually returned to Hon Hai with Belkin.

It can be said that TP-Link has hardened itself in the North American market by virtue of its extreme price/performance ratio. But today, this road is being forcibly cut off by political forces.

If you still have questions about the new U.S. FCC regulations, or need to handle the U.S. company registration, compliance certification, localization layout services, welcome to contact me at any time (micro-signal: qcygscszk, or call cell phone: 18676749275). Let us help you meet the challenges with our professional U.S. market services experience and a solid foundation.

TP-Link's "U.S. Hijacking": From 337 Investigations to Antitrust Litigation

In fact, the U.S. siege of TP-Link did not happen overnight, but a combination of punches that lasted several years:

2024: NETGEAR sued TP-Link for infringing on its Mesh routing, WiFi related patents, initiating a 337 investigation, which ended with TP-Link paying $135 million to settle and avoiding a ban.

April 2025: The U.S. Department of Justice (DOJ) launched a criminal + civil antitrust investigation of TP-Link.

October 2025: The Texas Attorney General (AG) opened an investigation into TP-Link, alleging false advertising, concealment of Chinese affiliation, and data privacy violations.

February 2026: The Texas Attorney General has formally sued TP-Link, claiming that the device was hacked to prohibit state employees from using its products.

March 2026: The FCC has introduced new rules to completely block new foreign-made routers.

From patent lawsuits to antitrust investigations, from state lawsuits to blocking by federal agencies, TP-Link's business in the U.S. is facing an unprecedented systematic squeeze. The new regulation is more like a "precision strike" against Chinese network equipment brands.

V. Implications for Chinese Sellers and Brands: Response Strategies and Long-Term Layout

Although the blocking of the router category may seem to be far away from ordinary cross-border sellers, the signal behind it deserves the vigilance of every Chinese company doing business in the U.S. market:

1. There is still room in the stock market, seize the existing product operation

The new regulation is only for new models, and stock models that have already been approved can still be sold normally. For models already on sale, this window can be fully utilized to optimize operations and consolidate market share.

2. Supply chain diversification is a must

TP-Link has shifted some of its production capacity to Vietnam, but it is still characterized as "foreign-made". This means that simply transferring production capacity may not be enough, and in the future it may be necessary to consider more thorough localization, or even set up assembly plants in the United States.

3. Compliance costs will continue to escalate

From FCC certification to Department of Defense review, the compliance threshold for hardware products that want to enter the U.S. market will become higher and higher in the future. Understanding the exemption application process and preparing relevant materials in advance is a must for entering the market.

4. Brand localization as a long-term solution

TP-Link founder Zhao Jianjun is applying for a "Trump Gold Card" in an attempt to label his brand with a stronger American identity. For brands with a certain degree of strength, setting up a local entity in the US, recruiting a local team and establishing a local supply chain could be a long-term strategy to avoid similar risks in the future.

5. Focusing on the exemption mechanism and seeking "conditional approval"

The new FCC regulations leave a back door open -- if the U.S. Department of Defense or the Department of Homeland Security determines that a model "does not pose an unacceptable risk," a conditional approval may be issued. Although the threshold is high, it is not completely unattainable.

VI. What can we do for you?

In the face of the increasingly tightened market access policies in the United States, you need not just an information provider, but a professional partner who really understands the U.S. market and can help you get the compliance landing.

The value that Enterprise Finance earnings can bring to you:

Let's you quickly figure out exactly how the new rules will affect you.
Whether you're a router manufacturer or an exporter of other electronic devices, we can help you interpret the latest FCC policies and analyze whether your products are under control, how long you can sell your existing stock, and whether there are still opportunities for new models.

Let you smoothly handle the U.S. company registration and localization layout.
If you are considering establishing a local entity in the U.S. and applying for Conditional Approval, we can provide you with a complete solution, from incorporation, to addressing, to applying for an EIN. We have offices in the U.S. and are familiar with local regulations and procedures.

Gives you access to specialized compliance certification support.
From FCC certification to Department of Defense security review, from product labeling to technical documentation, we can help you sort out the specific requirements and interface with professional certification bodies to ensure that your products enter the U.S. market smoothly.

Allows you to set up a long-term compliant operating system.
The U.S. market is only becoming more tightly regulated. We will help you establish a sustainable compliance operation system, from supply chain management to product certification, from fiscal compliance to intellectual property protection, so that you can stand firm in the complex market environment.

If you still have questions about the new U.S. FCC regulations, or need to handle the U.S. company registration, compliance certification, localization layout services, welcome to contact me at any time (micro-signal: qcygscszk, or call cell phone: 18676749275). Let us help you meet the challenges with our professional U.S. market services experience and a solid foundation.