The US government is drafting a ban on imports of new Chinese data center components, aiming to protect critical infrastructure supporting artificial intelligence (AI) development, sources revealed on August 4.

Four insiders stated that the Federal Communications Commission (FCC), which regulates the US telecom industry, is crafting measures to prohibit imports of new Chinese optical transceiver modules. These modules are essential for high-speed fiber optic data transmission within data centers. US officials aim to announce and implement the ban within 2026, though the FCC may still modify or shelve the restrictions.

In response, the Chinese Embassy in Washington urged the US to "listen to the objective and rational voices of the business communities from both countries" and stop defaming Chinese companies, while threatening sanctions. The embassy added that China will take all necessary measures to respond to any actions that seriously harm its interests.

If the ban takes effect, it could impact Zhongji Innolight, a leading global supplier of optical transceiver modules. According to Counterpoint Research, the company holds approximately 27% of the global data center optical transceiver module market, maintaining an industry-leading position. A report from the US Innovation Foundation noted that production scales of Coherent and Lumentum remain insufficient to replace Chinese suppliers.