Trump administration drafts ban on Chinese data center devices over security concerns
China says it will enact appropriate countermeasures against actions that harm its interests
The Trump administration is officially restructuring regulations on US imports of new models of Chinese data center component models, aiming to protect the framework that supports the AI boom.
The Federal Commission is primarily working on certain measures for new Chinese optical transceiver models, allowing data to travel over fiber-optic cables at high propagation speeds.
This significant move is intended to preclude Chinese firms from stealing data, gaining unauthorized access and control or disrupting service at US data centers. Meanwhile, the FCC still amended confidentiality restrictions to discuss sensitive matters.
The current example of the Trump administration is to restrict access to Chinese technological advances into groundbreaking US industries before they become included in the supply chain.
In this connection, Divyansh Kaushik, an AI policy expert said: “Transceivers definitely pose a risk.”
Beijing urged the United States to listen to the voice of reason from business communities in both countries, cease smearing Chinese companies and cease using the FCC as independent.
The US Supreme Court supported Trump’s firing of a Democratic Federal Trade Commissioner, in doing so extending his mandate over the government including certain regulatory agencies.
Crucially, a US ban on new models of Chinese data center components would likely affect China’s Zhonji InnoLight-a massive global seller of transceivers reportedly added to the Pentagon’s list of Chinese-military backed companies in June.
According to a report by the Foundation for American Innovation, Coherent and Lumentum focus on specialized market segments but lack the scale to replace Chinese vendors. Trump drew attention during his first term to infringement of intellectual property by Chinese firms and state-sponsored spying by Huawei.
Nonetheless, the FCC has intervened by announcing the drone and router bans in December and March to prohibit future equipment sales by foreign companies whose products pose a national security threat.
