The White House is preparing new restrictions that would ban US imports of Chinese-made optical transceivers used in AI data centers, according to sources familiar with the plan. The Federal Communications Commission (FCC) is developing the proposed rules and is expected to announce them later this year. The move targets a key component in the fiber-optic networks that connect servers inside AI facilities, raising fresh concerns about supply chain security.
Why transceivers are in the crosshairs
US officials worry that Chinese-made transceivers could be exploited to steal sensitive information, install malicious software, or disrupt operations inside AI data centers. The proposed restrictions follow lessons learned from the Huawei situation, where Chinese telecom equipment became deeply embedded in US infrastructure, making replacement costly and time-consuming. AI policy expert Divyansh Kaushik said transceivers pose a risk and that AI developers need to secure the data center supply chain from the start.
What the FCC is doing
The FCC is drafting the ban, which would apply to new models of Chinese optical transceivers. The agency has not yet released a timeline, but officials expect an announcement before the end of 2026. The restrictions would not affect existing equipment already installed in US data centers, but would block future imports. The move is part of a broader push by the Trump administration to limit Chinese influence in critical technology sectors.
China pushes back
The Chinese embassy in Washington urged the US to stop smearing Chinese companies and threatening them with sanctions. In a statement, the embassy said China will take all necessary measures in response. The reaction was swift, though specific countermeasures have not been detailed. The dispute adds another layer of tension to US-China tech relations, which have been strained since the Huawei ban and subsequent export controls on semiconductors.
President Trump has frequently emphasized the importance of keeping the US as a leader in artificial intelligence and cryptocurrency adoption and development. The transceiver ban could slow the buildout of AI data centers if alternative suppliers are not readily available. For crypto miners and blockchain networks that rely on high-speed data center infrastructure, the restrictions may introduce delays or higher costs. The timing isn't great — AI data center construction is already facing component shortages and long lead times.
The FCC is expected to release a formal proposal in the coming months. Industry groups are likely to push back, arguing that a sudden ban could disrupt operations and raise costs. For now, data center operators are watching closely, waiting to see which specific transceiver models will be affected and whether a phase-in period will be offered.
