Trump Administration Drafts Ban on Chinese AI Components

The Federal Communications Commission is drafting a ban on the import of new Chinese data center components, specifically optical transceivers. The move aims to protect the infrastructure supporting the artificial intelligence boom by preventing Chinese firms from installing malware, disrupting services, or stealing data from U.S. data centers.

The measure is expected to be published and take effect within the current year. The ban would likely target Zhongji Innolight, a major global transceiver seller already flagged by the Pentagon. While the restriction may increase costs for U.S. cloud providers such as Amazon Web Services, U.S.-based companies Coherent and Lumentum are expected to benefit from the shift in procurement.

The Government of China condemned the proposal through its embassy in Washington. Chinese officials urged the U.S. to stop "smearing Chinese companies" and warned that China will take necessary measures in response to actions that cause material harm to its interests.