The US administration is drafting a ban on imports of new Chinese-made optical transceivers used in US data centers, according to four people familiar with the matter. Reuters reported that the Federal Communications Commission is preparing the rule and hopes to publish it this year. Optical transceivers are critical networking components that move data through fiber-optic links inside AI data centers. Officials say the proposal aims to reduce risks that foreign-made hardware could enable espionage, malware deployment or service disruption. The restriction would affect suppliers including Zhongji Innolight, which was added to a Pentagon list of alleged Chinese military-linked companies in June. The proposal is still being finalized and could change before implementation. China said it would respond to measures harming its interests. Cloud operators, including AWS, could face higher infrastructure costs as they shift procurement toward alternative suppliers.
The US administration is drafting a ban on imports of new Chinese-made optical transceivers used in US data centers, according to four people familiar with the matter. Reuters reported that the Federal Communications Commission is preparing the rule and hopes to publish it this year. Optical transceivers are critical networking components that move data through fiber-optic links inside AI data centers. Officials say the proposal aims to reduce risks that foreign-made hardware could enable espionage, malware deployment or service disruption. The restriction would affect suppliers including Zhongji Innolight, which was added to a Pentagon list of alleged Chinese military-linked companies in June. The proposal is still being finalized and could change before implementation. China said it would respond to measures harming its interests. Cloud operators, including AWS, could face higher infrastructure costs as they shift procurement toward alternative suppliers.