FCC drafts import ban on Chinese data-center transceivers

The Trump administration is preparing to impose import restrictions on new models of Chinese-made optical transceivers, a critical component for data centers, as part of an effort to secure the infrastructure underpinning the artificial intelligence boom. According to sources familiar with the matter, the Federal Communications Commission is drafting the measure, which officials hope to publish and implement later this year.

The proposed ban targets small, pluggable devices that convert electrical signals into light for high-speed transmission over fiber-optic cables within data centers, forming the backbone of networks that connect AI chips. U.S. officials are concerned that Chinese-made transceivers could be exploited to steal sensitive data, install malware, or disrupt services at American facilities housing advanced AI systems. The move reflects a broader strategy to prevent Chinese technology from becoming deeply embedded in critical U.S. digital infrastructure before security risks can be fully assessed.

AI policy expert Divyansh Kaushik of Beacon Global Strategies stated that transceivers definitely pose a risk. He emphasized the importance of securing the data center...