US Lawmakers Aim to Keep China's Datacenter Tech out of Sensitive Government Systems
Bipartisan US lawmakers have introduced legislation to prohibit the federal government from using Chinese-made optical transceivers in sensitive government systems, particularly those in AI data centers. The bill targets manufacturers like Eoptolink and Zhongji Innolight, citing national security concerns. The US industry, however, warns this could slow AI infrastructure development and create supply chain challenges.
A bipartisan group of US lawmakers, including Republicans John Cornyn and Dave McCormick and Democrats John Fetterman and Ruben Gallego, introduced legislation on Friday aimed at banning the federal government from incorporating Chinese-made optical transceivers into sensitive government systems, particularly within AI data centers.
These optical transceivers are critical components for transmitting data over fiber-optic cables and are essential to the burgeoning US AI infrastructure. The proposed bill specifically targets Chinese manufacturers Eoptolink and Zhongji Innolight, which dominate the market for these parts. Supporters of the legislation argue that these devices could be exploited by Beijing to disrupt access to vital US AI tools and cloud services, posing a national security risk.
However, the US industry has expressed concerns that such a restriction could impede the buildout of US AI infrastructure, potentially ceding technological ground to China as hyperscalers struggle to find alternative suppliers. The Information Technology Industry Council, a tech lobbying group, urged the FCC in an August 13 letter to avoid adding optical transceivers to a trade blacklist, highlighting potential supply chain disruptions. US-based firms Coherent and Lumentum offer competitive technology but reportedly lack the scale to replace Chinese vendors, according to a Foundation for American Innovation report. If approved, the government would have five years to comply, with the Secretaries of Commerce and Defense empowered to add more companies to the restricted list.