The Trump administration is developing a measure to prohibit US imports of new models of Chinese datacenter components, specifically optical transceivers used within datacenters, according to four sources familiar with the matter who spoke with Reuters. The Federal Communications Commission, which oversees the telecommunications industry, is leading the effort, with officials aiming to publish the measure later this year. The FCC could still modify or abandon the restriction during the deliberation process.
Chinese companies control a significant portion of the global optical transceiver market and are major suppliers of datacenter components. Experts contend that Chinese-made datacenter components embedded in US infrastructure could pose risks, potentially allowing foreign firms to steal data, install malware, or disrupt service. US officials have characterized the proposed restrictions as necessary to protect the national supply chain and address national security concerns.
The deliberations represent the latest in a series of actions by the Trump administration aimed at limiting Chinese technological advancement in strategic sectors. The FCC announced a ban on advanced Chinese humanoid robots earlier this year, and administration officials are also reportedly considering restrictions on Chinese open-source AI models. Treasury Secretary Scott Bessent has suggested that China could face sanctions related to alleged theft of US intellectual property and data.
The Chinese embassy in Washington responded by urging the US to heed business communities in both countries and cease what it characterized as efforts to smear Chinese companies with sanctions threats. Beijing stated it would take necessary measures in response to actions causing material harm to its interests. Some administration officials have cited Huawei, a Chinese telecommunications company whose equipment became deeply embedded in US infrastructure, as justification for the new restrictions. A potential ban would likely affect Zhongji Innolight, a major global transceiver seller that was added to the Pentagon’s list of alleged Chinese military-backed companies in June.
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