Trump administration drafts rule to block new Chinese datacenter parts

Federal Communications Commission officials are reportedly drafting a rule that would stop the United States from importing new generations of Chinese optical transceivers, the components that move data at light speed within datacenters. The proposal, expected to be published before year-end, is part of a wider Trump administration strategy to limit Chinese technological penetration in critical U.S. sectors. The push comes amid rapid AI development in China, which has unsettled markets and prompted U.S. tech leaders to warn of supply-chain and security vulnerabilities.

In addition to the transceiver ban, the administration is said to be considering restrictions on Chinese open-source AI models and recently prohibited advanced Chinese humanoid robots. Treasury Secretary Scott Bessent has suggested that China could face sanctions for alleged data and intellectual-property theft. The rule would likely target firms like Zhongji Innolight, a major global transceiver seller that the Pentagon added to its list of suspected military-backed Chinese companies in June.