US Lawmakers Move to Bar Chinese Optical Transceivers from Sensitive Government Systems

A bipartisan group of US lawmakers introduced legislation on Friday that would prohibit the federal government from using Chinese-made optical transceivers in sensitive government systems. The devices, which transmit data over fiber-optic cables at the speed of light, are central to the rollout of AI infrastructure in the United States, with some data centers requiring millions of them.

The bill, sponsored by Republicans John Cornyn and Dave McCormick and Democrats John Fetterman and Ruben Gallego, would apply to optical transceivers manufactured by China's Eoptolink and Zhongji Innolight. Supporters argue the components could be exploited by Beijing to disrupt access to US AI tools and cloud services.

"We shouldn't rely on China for technologies that are essential to our national security," McCormick said in a press release. Cornyn added that critical government communication and information systems must be safe and reliable, and that the use of Chinese technology undermines that goal.

The legislation adds to mounting pressure on Chinese optical transceiver makers, which dominate the market for parts critical to AI data centers. Innolight has been placed on a Pentagon list of alleged Chinese military-backed companies. Innolight, Eoptolink, and the Chinese Embassy did not immediately respond to requests for comment.

However, the US technology industry has warned that such a restriction could slow the country's AI infrastructure buildout and cede ground to China, as hyperscalers scramble to find alternative suppliers. The Information Technology Industry Council, a tech lobbying group, sent a letter to the Federal Communications Commission on August 13 urging the telecoms watchdog to refrain from adding optical transceivers to a trade blacklist, citing the potential effects of supply disruptions on data center deployment and US AI leadership.

US-based firms Coherent and Lumentum offer competing technology but lack the scale to replace Chinese vendors, according to a report by the Foundation for American Innovation. They did not immediately respond to requests for comment.

If approved, the legislation would give the government five years to comply, and the Secretaries of Commerce and Defense would have the authority to add more companies to the restricted list.