The communication equipment sector on China's A-share market opened lower on August 5, but losses narrowed as the session progressed. Market rumors suggest that the US Federal Communications Commission (FCC) is drafting a ban to prohibit the import of new Chinese data center components, including optical modules. However, multiple institutions believe that leading Chinese companies hold over 70% of global high-speed optical module production capacity, giving them a core competitive advantage. Relying solely on North American production capacity would likely fail to meet demand, making the policy's implementation improbable.

According to sources, the Trump administration is drafting a ban to prohibit the import of new Chinese data center components, aiming to protect the infrastructure supporting the artificial intelligence (AI) boom. The FCC, which oversees the US telecommunications industry, is developing the measure to ban imports of new Chinese optical modules, or optical transceivers. US officials aim to release the act this year, after which it would take effect. Sources emphasized that the FCC could still modify or shelve the restriction. Meanwhile, media outlets contacted the secretarial offices of Zhongji Innolight (300308.SZ), Eoptolink Technology (300502.SZ), and TFC Communication (300394.SZ).

A staff member from Zhongji Innolight's secretarial office stated that the company had noted the relevant market information and verified that the FCC has not yet issued any restrictive documents in this area. "Because the FCC has not released any restrictive documents in this domain, the company will not comment on the rumors," the representative said. A staff member from Eoptolink Technology's secretarial office said the company is aware of the reports and is closely monitoring the situation. "There is currently no authoritative source for this news. If it reaches the threshold for information disclosure, the company will respond through announcements or other means," they added. A staff member from TFC Communication's secretarial office noted that the news's impact on the company is primarily emotional. "The extent of the effect depends on whether the market rumors are true. Our company produces optical components, and optical modules are our downstream customers' products," the representative explained.

Industry insiders noted that among the world's top 10 optical module manufacturers, seven are Chinese firms. In high-speed optical modules such as 800G and 1.6T, Chinese companies account for 70% of shipments, while US manufacturers face deficiencies in both production capacity and technological advancement. Historically, the likelihood of a strict ban on Chinese optical module imports is low, due to opposition from US cloud providers. Even if such policies were introduced, they would likely include numerous exemptions. CITIC Securities' communications team interpreted that the vast majority of global high-speed optical modules come from Chinese manufacturers, making it impossible for overseas suppliers alone to meet North American demand. Replacing existing stock entirely would incur an unimaginable cost, making the restrictions "a lot of thunder but little rain" in the end. CICC stated that the core function of optical modules is photoelectric signal conversion, and they do not store business data themselves. Compared to active equipment, their risk boundaries and attack capabilities are significantly different.