Reuters: Trump administration drafting ban on Chinese-made data center equipment

(CNA, Washington, April 4 -综合 international wire reports) Four知情 sources told Reuters that the Trump administration is drafting a ban on importing new Chinese-made data center components to protect the infrastructure underpinning the artificial intelligence (AI) boom.

According to the report, the Federal Communications Commission (FCC), the U.S. telecommunications regulator, is formulating measures to prohibit the import of new Chinese-made optical transceivers—devices that enable data to travel at light speed within data centers via fiber-optic cables. Officials aim to announce and implement the ban this year.

This previously undisclosed move aims to prevent Chinese companies from stealing data, implanting malicious software, or disrupting operations at U.S. data centers, which house the chips needed to train and run AI models.

Sources familiar with the matter, who requested anonymity due to the sensitivity of the issue, said the FCC might still modify or suspend these restrictions. This marks the latest example of the Trump administration seeking to limit Chinese technology before it penetrates advanced U.S. industries.

Divyansh Kaushik, an AI policy expert at Beacon Global Strategies, a Washington-based security consulting firm, said: "Transceivers do pose risks. As data centers scale up, you want to ensure the supply chain is secure from the outset."

Neither the White House nor the FCC responded to requests for comment. The Chinese Embassy in the United States stated that Beijing urges Washington to "listen to the objective and rational voices of businesses in both countries" and "stop smearing Chinese companies and threatening sanctions." It added: "China will take all necessary measures in response to any actions that cause substantial harm to its interests."

A ban on new Chinese-made data center equipment is expected to hit Zhongji Xuchuang, one of the world’s largest transceiver suppliers. The company was placed in June on the U.S. Department of Defense’s list of entities suspected of ties to the Chinese military—a designation that could signal future, harsher sanctions. Zhongji Xuchuang did not respond to requests for comment.

The ban could also increase costs for U.S. cloud providers such as Amazon Web Services (AWS), as they may be forced to shift to domestic suppliers like Coherent and Lumentum. The latter two would benefit from the ban. (Translation: Ho Hung-ju) 1150804