Bipartisan Bill Seeks to Ban Chinese Optical Transceivers from US Government AI Systems

A bipartisan group of U.S. lawmakers introduced legislation on Friday to bar the federal government from using Chinese-made components critical for AI data centers in sensitive government systems, citing national security concerns.

The proposed bill targets optical transceivers, devices that enable high-speed data transmission over fiber-optic cables and are fundamental to the infrastructure supporting artificial intelligence and cloud computing.

National Security Concerns Drive Legislation

The bill specifically aims to restrict components from Chinese manufacturers Eoptolink and Zhongji Innolight, which are major players in the global market for these parts. Proponents of the legislation, which includes Republicans John Cornyn and Dave McCormick and Democrats John Fetterman and Ruben Gallego, argue that the components could be exploited by Beijing to disrupt U.S. AI capabilities.

"We shouldn’t rely on China for technologies that are essential to our national security," said Senator McCormick in a press release. Senator Cornyn added that "Critical government communication and information systems must be safe, reliable, and free of any foreign interference."

According to the Reuters report, Zhongji Innolight was recently added to a Pentagon list of companies alleged to have ties to the Chinese military. The Chinese companies and the Chinese Embassy did not immediately respond to requests for comment.

Ad

Industry Warns of Supply Chain Disruption

While the bill is motivated by security, tech industry groups have voiced concerns that such a move could backfire by hindering the U.S. AI infrastructure rollout. The Information Technology Industry Council, a tech lobbying group, argued in an August 13 letter to the Federal Communications Commission (FCC) that supply disruptions could negatively impact data center deployment and U.S. leadership in AI.

The industry's position highlights the current market reality where Chinese firms dominate the supply of optical transceivers. While U.S.-based companies like Coherent and Lumentum offer competing products, a report from the Foundation for American Innovation noted they currently lack the manufacturing scale to replace Chinese vendors.

Details of the Proposed Ban

If the legislation is passed, the federal government would have five years to remove the specified Chinese components from its sensitive systems. The bill would also grant the Secretaries of Commerce and Defense the authority to add other companies to the restricted list in the future.