US weighs Chinese AI component ban

• The Trump administration is reportedly preparing restrictions on new Chinese optical transceivers used inside US AI data centres.
• US officials reportedly fear the equipment could enable data theft, malware installation or disruptions inside critical AI infrastructure.
• The FCC is developing the proposal and could announce restrictions later this year, although the measure could still change.

The Trump administration is reportedly preparing a ban on new Chinese optical transceivers used inside US AI data centres.

The components transmit data through fibre-optic cables and connect AI chips inside modern data centres.

“Transceivers definitely pose a risk,” said Beacon Global Strategies AI policy expert Divyansh Kaushik.

The FCC is developing the restrictions and could announce them later this year, but the proposal could still change.

US officials reportedly fear Chinese-made components could enable data theft, malware installation or disruptions inside data centres.

The proposal follows earlier US restrictions on Chinese technology, including telecommunications equipment, robots and power infrastructure components.

China's Washington embassy urged the US to stop targeting Chinese companies with sanctions and warned against further economic confrontation.