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FCC developing ban on new Chinese optical transceivers for datacenters
The FCC, which oversees the telecommunications industry, aims to publish the measure this year, though officials could still modify or shelve it.
The Trump administration is reportedly developing a measure through the Federal Communications Commission to bar US imports of new models of Chinese datacenter devices, according to sources cited by Reuters and carried by the Guardian Business. The focus is on Chinese optical transceivers, hardware that enables data to move over fiber optic cables inside datacenters.
Officials expect to publish the measure this year, the report said, adding that the FCC could still revise or abandon the restriction. The deliberations are framed as part of a broader effort to limit what the administration views as Chinese technological incursions into advanced US industries.
The story also notes that Chinese firms dominate the optical transceiver market globally, a factor that heightens pressure on US plans to expand AI infrastructure. It says US tech companies have committed trillions of dollars to build American AI capacity, while China is attempting to accelerate datacenter and related technology development.
Experts cited in the report argue the concern is not only competitiveness, but security, because components embedded in US infrastructure could be used to steal data, install malware, or disrupt services. The Guardian Business connects the move to market jitters and a scramble by the administration to respond to rapid AI progress in China.