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<v Speaker 1>The Trump administration is drafting new regulatory measures to restrict

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<v Speaker 1>US imports of next generation Chinese data center hardware, targeting

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<v Speaker 1>key optical components essential for high speed artificial intelligence infrastructure.

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<v Speaker 1>According to officials familiar with the deliberations, the Federal Communications

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<v Speaker 1>Commission is leading the effort to block imports of new

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<v Speaker 1>Chinese made optical transceivers, the fiber optic devices responsible for

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<v Speaker 1>transmitting high volume data across server networks. The proposed measure

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<v Speaker 1>aims to prevent foreign components from becoming deeply embedded in

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<v Speaker 1>the physical supply chains powering critical domestic computing clusters. National

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<v Speaker 1>security officials are advancing the policy to mitigate potential risks

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<v Speaker 1>of data exfiltration, firmware vulnerabilities, and service disruptions within facilities

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<v Speaker 1>housing advanced AI training models. By introducing restrictions at the

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<v Speaker 1>import phase via regulatory lists, defense planners seek to avoid

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<v Speaker 1>past challenges associated with foreign telecommunications equipment, where legacy hardware

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<v Speaker 1>proved difficult and costly to remove once integrated into national networks.

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<v Speaker 1>The rule would primarily target new equipment models, allowing existing

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<v Speaker 1>data center deployments to remain operational while shifting future procurement

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<v Speaker 1>toward alternative suppliers. The potential restrictions could significantly alter global

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<v Speaker 1>supply chains for optical hardware, where Chinese manufacturers currently supply

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<v Speaker 1>a major share of international market capacity. While US networking

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<v Speaker 1>firms experienced market gains following news of the draft proposal,

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<v Speaker 1>technology analysts caution that replacing Chinese manufacturing capacity could increase

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<v Speaker 1>equipment costs and lengthen build out timelines for major US

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<v Speaker 1>cloud providers. Officials in Beijing have urged Washington to refrain

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<v Speaker 1>from imposing unilateral trade barriers, warning that restrictions on commercial

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<v Speaker 1>technology damage international supply chain stability. Interagency review of the

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<v Speaker 1>draft rule remains ongoing, with administration officials aiming to finalize

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<v Speaker 1>the measure within the current calendar year.