The Trump administration is drafting a rule that would block U.S. imports of new Chinese-made optical modules used in data centers, according to Reuters, which cited four people familiar with the matter. The measure is being prepared by the Federal Communications Commission and would cover new module models that transmit data through fiber-optic cables inside data centers. Officials want the ban published and put into effect within this year.
Reuters said the proposal is meant to prevent Chinese companies from stealing data, inserting malware, or disrupting U.S. data center services. The draft could hit Eoptolink most directly. The report said the company holds a leading 27% share of the global data center optical module market and was added to the Pentagon’s list of Chinese military-linked companies in June this year. U.S. cloud providers including Amazon Web Services may have to shift to alternative suppliers such as Coherent and Lumentum, which could raise costs. China’s embassy in Washington said it would take all necessary measures in response to any action that harms Chinese interests. The draft can still be revised or shelved.
The Trump administration is drafting a ban that would block U.S. imports of new Chinese-made optical modules for data centers, according to Reuters, which cited four people familiar with the matter.
Reuters reported that the Federal Communications Commission is preparing the measure. It would bar imports of new optical module models used to transmit data through fiber-optic cables inside data centers. Officials want the rule published and effective within this year.
The proposed ban is intended to stop Chinese companies from stealing data, planting malware, or disrupting services at U.S. data centers. The draft can still be changed or shelved.
Companies and supply chain impact
The move may fall most heavily on Eoptolink. Reuters said the company leads the global market for data center optical modules with a 27% share and was added to the Pentagon’s list of Chinese military-linked companies in June this year.
U.S. cloud providers such as Amazon Web Services may be forced to shift to alternative suppliers including Coherent and Lumentum, a switch that could push up costs.
Part of a broader pattern
The FCC has previously imposed similar restrictions on Chinese-made drones, routers, robots, and inverters.
China’s embassy in the United States said it would “take all necessary measures” in response to any action that harms China’s interests.
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