Trump administration drafts new export control restrictions on Chinese-manufactured AI data center components, escalating trade measures on critical infrastructure supply chains.

The Trump administration is drafting a ban on U.S. imports of new models of Chinese data center components to protect the infrastructure underpinning the artificial intelligence boom. The Federal Communications Commission, which oversees the U.S. telecommunications industry, is working on a measure that would bar imports of new Chinese optical transceivers—devices that allow data to travel over fiber-optic cables within data centers. Officials hope to publish the measure this year, with implementation to follow.

The proposal aims to prevent Chinese firms from stealing data, installing malware, or disrupting services at U.S. data centers that house the chips used to train and run AI models. Though sources familiar with the matter indicated the FCC could still modify or shelve the proposal, the move represents the latest effort by the Trump administration to limit Chinese technology from becoming embedded in critical U.S. industries before it gains a larger foothold in supply chains. The White House and the FCC declined to comment.

China's embassy in Washington responded by urging the United States to "heed the objective and rational voices of the business communities in both countries" and "stop smearing Chinese companies and threatening them with sanctions." The embassy added: "China will take all necessary measures in response to any action that causes material harm to its interests."

A U.S. ban on new models of Chinese data center devices would likely affect Zhongji Innolight, one of the world's largest suppliers of optical transceivers, which was added to the Pentagon's list of alleged Chinese military-backed companies in June. The proposed restrictions could also raise costs for American cloud providers such as Amazon Web Services by requiring them to shift purchases to other suppliers.

According to sources, the FCC's proposal would ban imports of new transceiver models while exempting many non-Chinese suppliers from the restrictions. The FCC has previously imposed similar restrictions on Chinese drones, routers, robots, and power inverters, announcing bans on Chinese drones and routers through its Covered List, with restrictions on Chinese inverters and robots following last week.