Exclusive-Trump administration drafting ban on Chinese data center devices, sources say

Key Points:

• The Trump administration is preparing a ban on U.S. imports of new models of Chinese data center components, specifically targeting optical transceivers used in data centers to secure AI infrastructure from espionage and sabotage risks.
• The Federal Communications Commission (FCC) is leading the effort and aims to publish the measure this year, which would prohibit new Chinese transceiver imports while exempting many non-Chinese suppliers.
• This move targets major Chinese firms like Zhongji Innolight, a leading global transceiver seller recently designated by the Pentagon as military-backed, potentially increasing costs for U.S. cloud providers such as Amazon Web Services.
• China has condemned the potential ban, warning it will respond to any actions harming its interests, while U.S. companies producing competing transceivers saw their stock prices rise following the news.
• The FCC has previously imposed similar restrictions on Chinese drones, routers, robots, and inverters, reflecting ongoing U.S. efforts to limit Chinese technological influence in critical infrastructure sectors.