Key facts
- US lawmakers introduced legislation to ban Chinese-made optical transceivers in sensitive government systems.
- Optical transceivers are critical components for AI data centers, enabling high-speed data transmission.
- The bill is sponsored by Republicans John Cornyn and Dave McCormick, and Democrats John Fetterman and Ruben Gallego.
- The legislation targets Chinese companies like Eoptolink and Zhongji Innolight, which dominate the market.
- Supporters argue the ban is necessary for national security to prevent foreign interference.
- The US industry warns that such a ban could disrupt AI infrastructure buildout and cede ground to China.
A bipartisan group of U.S. lawmakers has introduced legislation aimed at preventing the federal government from using Chinese-made optical transceivers in sensitive government systems, citing national security concerns. These devices are crucial for transmitting data at high speeds within AI data centers, a sector experiencing rapid expansion in the U.S.
The proposed bill, sponsored by Republican Senators John Cornyn and Dave McCormick, along with Democratic Senators John Fetterman and Ruben Gallego, seeks to block the use of optical transceivers manufactured by Chinese companies such as Eoptolink and Zhongji Innolight. These Chinese firms currently dominate the market for these critical components.
Proponents of the legislation argue that relying on Chinese technology for essential national security infrastructure could expose U.S. AI tools and cloud services to disruption from Beijing. "We shouldn’t rely on China for technologies that are essential to our national security," McCormick stated in a press release. Cornyn added that "Critical government communication and information systems must be safe, reliable, and free of any foreign interference."
Innolight, which has been placed on a Pentagon list of alleged Chinese military-backed companies, and Eoptolink did not immediately respond to requests for comment. The Chinese Embassy also did not respond.
However, the U.S. technology industry has voiced concerns that such restrictions could impede the buildout of U.S. AI infrastructure and potentially cede market leadership to China, as hyperscale operators struggle to find alternative suppliers. The Information Technology Industry Council, a tech lobbying group, previously urged the Federal Communications Commission (FCC) to avoid adding optical transceivers to a trade blacklist, highlighting the potential for supply disruptions to affect data center deployment and U.S. AI leadership.
While U.S. firms like Coherent and Lumentum offer competing technologies, they reportedly lack the production scale to replace the Chinese vendors, according to a report by the Foundation for American Innovation. If enacted, the legislation would provide the government five years to comply with the new restrictions, with the Secretaries of Commerce and Defense empowered to designate additional companies for inclusion on the restricted list.