The Trump administration is drafting a ban on new Chinese datacenter components to secure US infrastructure.
The Trump administration is reportedly drafting a measure to bar US imports of new models of Chinese datacenter components, specifically optical transceivers. The Federal Communications Commission is developing this measure to address the rapid development of AI technology in China and to mitigate national security risks, such as potential malware or data theft. By limiting Chinese technological incursions, the administration aims to protect the US supply chain and ensure domestic companies remain competitive. The move is expected to hit major Chinese sellers like Zhongji Innolight. In response to the policy shift, domestic suppliers like Applied Optoelectronics saw a significant price increase, as investors anticipate a more favorable competitive landscape for American hardware. The administration announced that the FCC could still modify or shelve the restriction, but the focus remains on reducing reliance on Chinese technology that is deeply embedded in US infrastructure.