The Trump administration is drafting a ban on U.S. imports of new Chinese-made optical transceivers. The Federal Communications Commission (FCC) expects to publish and enact the measure in 2026. This move aims to protect the infrastructure supporting the U.S. artificial intelligence boom from national security threats.
Regulators warn that Chinese-made components could facilitate data theft, malware installation, or service disruptions. The proposed ban follows previous FCC restrictions on Chinese-made drones, routers, and robots.
The action could increase operational costs for U.S. cloud operators. It directly impacts Chinese manufacturers like Zhongji Innolight, which holds a significant global market share. U.S. optical component stocks rallied on the news, with shares of Coherent and Lumentum rising.