The administration of US President Donald Trump is drafting plans to ban imports of new models of Chinese-made data centre components as part of efforts to safeguard the infrastructure underpinning the country’s rapidly expanding artificial intelligence (AI) industry, according to four sources familiar with the matter.
The proposed measure, being developed by the US Federal Communications Commission (FCC), would prohibit the import of new Chinese optical transceivers—devices that enable high-speed data transmission through fibre-optic cables within data centres. Officials are aiming to publish the restriction later this year, after which it would take effect.
The move is intended to prevent Chinese firms from gaining access to critical US data infrastructure through alleged data theft, malware installation or service disruption. Data centres play a central role in training and operating AI models, making them a key strategic asset in the AI race.
The proposal, which has not been previously reported, remains under review and could still be amended or abandoned, the sources cautioned, speaking on condition of anonymity because of the sensitivity of the discussions.
If implemented, the restriction would mark the latest step by the Trump administration to limit China’s access to advanced US technology supply chains before Chinese-made components become deeply embedded in critical infrastructure.
“Transceivers definitely pose a risk,” said Divyansh Kaushik, an AI policy expert at Beacon Global Strategies.
“As the data centre buildout scales up, you want to make sure the data centre supply chain is secure from the get-go,” he added.
Investors reacted positively to the report, with shares of US-based optical transceiver manufacturers rising sharply. Lumentum gained seven per cent, Coherent rose 11 per cent, while Applied Optoelectronics surged 18 per cent.
The White House and the FCC did not immediately respond to requests for comment.
However, the Chinese Embassy in Washington criticised the proposed restrictions, urging the United States to “heed the objective and rational voices of the business communities in both countries” and to “stop smearing Chinese companies and threatening them with sanctions.”
The embassy warned that “China will take all necessary measures in response to any action that causes material harm to its interests.”
The proposed ban is expected to have a significant impact on China’s Zhongji Innolight, one of the world’s largest suppliers of optical transceivers. The company was added to the Pentagon’s list of alleged Chinese military-linked firms in June, a designation that often precedes tougher US restrictions. Innolight did not respond to requests for comment.
Industry analysts say the restriction could also increase costs for major American cloud computing providers, including Amazon Web Services (AWS), by forcing them to source equipment from alternative suppliers such as Coherent and Lumentum.
The administration’s concerns mirror earlier efforts to remove equipment made by Chinese telecommunications giant Huawei from US networks after officials argued that its technology posed national security risks. The costly and lengthy removal process has become a cautionary example for policymakers seeking to prevent similar dependencies in emerging AI infrastructure.
According to Counterpoint Research, Innolight controls about 27 per cent of the global data centre transceiver market. Although US firms Coherent and Lumentum manufacture competing products, analysts say they currently lack the production capacity to fully replace Chinese suppliers. A report by the Foundation for American Innovation also noted that approximately 90 per cent of Innolight’s revenue comes from markets outside China.
The FCC has recently expanded restrictions on Chinese technology, previously targeting drones, routers, robots and power inverters through its Covered List, which blocks future sales of equipment deemed to pose national security risks.
Under the proposed policy, the agency would ban imports of all new Chinese transceiver models while allowing exemptions for many non-Chinese manufacturers, according to three of the sources.
The initiative follows reports that the US Commerce Department earlier this year shelved separate import restrictions on Chinese data centre equipment after a temporary easing of trade tensions between Washington and Beijing. The FCC’s latest effort suggests the administration remains committed to tightening safeguards around critical AI infrastructure despite broader diplomatic considerations.
Boluwatife Enome
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