Overview
- The FCC is reported to be drafting a rule to bar imports of newly manufactured Chinese optical transceivers that move data inside data centers, with officials hoping to publish the measure before year end.
- Optical transceivers convert electrical signals to light for fiber links inside racks and the FCC says they could be used to steal data, install malware, or disrupt AI and cloud operations.
- The draft would exempt equipment already authorized for import so existing installs would remain in place but new models from Chinese firms would be blocked.
- China has warned it will respond if harmed and the rule would hit major vendors such as Zhongji Innolight, which holds about 27% of the global transceiver market and was recently named on a Pentagon list.
- The move builds on recent FCC Covered List actions that restricted Chinese drones, routers, robots and inverters and could raise costs for U.S. cloud providers that must shift to smaller suppliers like Coherent and Lumentum.