The Federal Communications Commission is preparing new restrictions that could ban imports of Chinese-made optical transceivers into the United States. Reuters, citing sources familiar with the matter, reported the decision could come before the end of 2026.
Optical transceivers convert electrical signals into optical ones and back, enabling high-speed data transfer between servers and networking equipment. These modules underpin data centers, cloud platforms and computing systems built for artificial intelligence, offering higher speed and energy efficiency than traditional copper connections.
Security concerns cited
According to Reuters, US officials are concerned the equipment could potentially be used for cyberespionage, malware installation or disruption of critical infrastructure.
Chinese company Innolight is one of the world's largest makers of optical transceivers, holding an estimated 27% of the global market, according to Reuters. In the US, similar products are made by Lumentum, Coherent and Applied Optoelectronics, though sources told the agency these firms still trail their largest Chinese rivals in production scale.
Part of a broader pattern
If adopted, the restrictions would extend a Washington policy of reducing dependence on Chinese telecommunications equipment. The US has already restricted Huawei products and tightened rules on certain drone models, networking equipment and some robotic devices, and has also considered banning Chinese power inverters.
US law allows for temporary exemptions. Netgear and Amazon have previously received special permits to use certain categories of equipment.
China's embassy in Washington called on the US to refrain from further tightening restrictions and to consider the business interests of both countries. China also said it reserves the right to take countermeasures if Washington's actions harm Chinese companies.
