Speaker 1: The Trump administration is drafting new regulatory measures to restrict
Speaker 1: US imports of next generation Chinese data center hardware, targeting
Speaker 1: key optical components essential for high speed artificial intelligence infrastructure.
Speaker 1: According to officials familiar with the deliberations, the Federal Communications
Speaker 1: Commission is leading the effort to block imports of new
Speaker 1: Chinese made optical transceivers, the fiber optic devices responsible for
Speaker 1: transmitting high volume data across server networks. The proposed measure
Speaker 1: aims to prevent foreign components from becoming deeply embedded in
Speaker 1: the physical supply chains powering critical domestic computing clusters. National
Speaker 1: security officials are advancing the policy to mitigate potential risks
Speaker 1: of data exfiltration, firmware vulnerabilities, and service disruptions within facilities
Speaker 1: housing advanced AI training models. By introducing restrictions at the
Speaker 1: import phase via regulatory lists, defense planners seek to avoid
Speaker 1: past challenges associated with foreign telecommunications equipment, where legacy hardware
Speaker 1: proved difficult and costly to remove once integrated into national networks.
Speaker 1: The rule would primarily target new equipment models, allowing existing
Speaker 1: data center deployments to remain operational while shifting future procurement
Speaker 1: toward alternative suppliers. The potential restrictions could significantly alter global
Speaker 1: supply chains for optical hardware, where Chinese manufacturers currently supply
Speaker 1: a major share of international market capacity. While US networking
Speaker 1: firms experienced market gains following news of the draft proposal,
Speaker 1: technology analysts caution that replacing Chinese manufacturing capacity could increase
Speaker 1: equipment costs and lengthen build out timelines for major US
Speaker 1: cloud providers. Officials in Beijing have urged Washington to refrain
Speaker 1: from imposing unilateral trade barriers, warning that restrictions on commercial
Speaker 1: technology damage international supply chain stability. Interagency review of the
Speaker 1: draft rule remains ongoing, with administration officials aiming to finalize
Speaker 1: the measure within the current calendar year.