The Trump administration is preparing new restrictions on Chinese-made optical transceivers used in AI data centers, according to a report. The Federal Communications Commission is developing the proposed rules, which would block future imports of these network components over security concerns. Officials fear Chinese transceivers could be exploited to steal data or disrupt operations. The Chinese embassy has urged the US to stop smearing Chinese companies, warning that Beijing will take all necessary measures in response. President Trump has repeatedly stated his goal of keeping the US the leader in AI and cryptocurrency.
The White House is reportedly preparing fresh restrictions targeting Chinese-made data centers as it seeks to secure the infrastructure powering the race for AI domination. The new rules, reported earlier today, would prohibit US imports of new models of Chinese optical transceivers used in AI data centers.
The Federal Communications Commission is developing the proposed restrictions and is expected to announce them later this year. If approved, they would block future imports of the network components, which transmit data through fiber-optic cables at extremely high speeds and play a key role in connecting AI chips inside modern data centers.
US officials are concerned that Chinese-made transceivers could be exploited to steal sensitive information, install malicious software, or disrupt operations inside the massive data centers powering leading AI models. Divyansh Kaushik, an AI policy expert at Beacon Global Strategies, “doubled down that ‘transceivers definitely pose a risk,’” and warned that AI developers “want to make sure the data center supply chain is secure from the get-go.”
The proposals come after hard lessons from the Huawei fiasco, when Chinese telecommunications equipment became so deeply embedded into American infrastructure that replacing it became highly expensive and time-consuming. Although the White House and the FCC failed to respond to queries, the Chinese embassy in Washington stated that Beijing had urged the US to “heed the objective and rational voices of the business communities in both countries and stop smearing Chinese companies and threatening them with sanctions.”
The officials added that China will “take all necessary measures” in response to whatever action is undertaken by the Trump administration. President Trump has frequently outlined the significance of keeping the US as the leader in artificial intelligence and cryptocurrency adoption and development.
