The United States government is drafting a ban targeting the import of new models of data center components from China, aiming to safeguard critical infrastructure that supports artificial intelligence (AI) development, according to sources familiar with the matter.

Four insiders revealed that the Federal Communications Commission (FCC), which oversees the US telecommunications sector, is crafting measures to prohibit the import of new Chinese optical transceiver modules. These modules are primarily used for high-speed fiber optic data transmission within data centers. US officials hope to unveil and enforce the ban by 2026. However, the sources noted that the FCC could still revise or shelve the restrictions.

In response, the Chinese Embassy in the United States stated that Beijing urges Washington to "listen to the objective, rational voices of the business communities in both countries" and to stop smearing Chinese companies and threatening them with sanctions. The embassy added, "China will take all necessary measures to respond to any actions that seriously harm China's interests."

If the ban is implemented, it could impact Zhongji Innolight, a major global supplier of optical transceiver modules. Data from Counterpoint Research shows that Zhongji Innolight holds about a 27% share of the global data center optical transceiver module market, leading the industry. A report from the American Innovation Foundation noted that production scales at Coherent and Lumentum remain insufficient to replace Chinese suppliers.