Foreign News
Trump Eyes Ban On Chinese Data Centre Components
The Trump administration is preparing new restrictions on Chinese technology used inside U.S. data centres, targeting equipment considered critical to America’s rapidly expanding artificial intelligence infrastructure.
According to Reuters, the Federal Communications Commission (FCC) is drafting rules that would ban imports of new models of Chinese optical transceivers—devices that transmit data through fibre-optic cables inside data centres.
The restrictions are expected to be published later this year if approved.
Focus On AI Infrastructure Security
U.S. officials believe Chinese-made transceivers could pose national security risks by allowing data theft, malware installation or disruption of services inside data centres that power advanced AI systems.
The move reflects Washington’s broader strategy of preventing Chinese technology from becoming deeply embedded in America’s critical digital infrastructure.
Experts say securing AI supply chains has become increasingly important as investment in large-scale data centres accelerates.
Chinese Firms Could Be Hit
The proposed restrictions would likely affect Zhongji Innolight, one of the world’s largest manufacturers of optical transceivers.
The company was added to the Pentagon’s list of firms allegedly linked to the Chinese military in June.
Industry analysts estimate Innolight controls around 27% of the global data centre transceiver market.
American companies such as Coherent and Lumentum could benefit if cloud providers shift away from Chinese suppliers, although analysts note they currently lack the manufacturing scale to fully replace Chinese producers.
Beijing Warns Of Response
China’s embassy in Washington criticised the proposed measures, urging the United States to stop targeting Chinese companies.
The embassy warned that Beijing would take “all necessary measures” if Chinese interests suffered material harm.
Part Of Broader Tech Restrictions
The proposed ban follows earlier FCC actions targeting Chinese drones, routers, robots and power inverters over national security concerns.
U.S. officials have cited lessons from Huawei, arguing they want to prevent another situation where Chinese technology becomes deeply integrated into American infrastructure before security concerns emerge.
The proposal still requires formal approval and could be modified or withdrawn before implementation.
(with inputs from Reuters)
