Reuters reported on the 4th (local time) that the U.S. administration of Donald Trump is pushing a bill to ban the import of Chinese-made parts used in data centers.
According to the report, the Federal Communications Commission (FCC) is drafting a bill to ban the import of new Chinese optical transceivers to protect key infrastructure related to artificial intelligence (AI). An optical transceiver is equipment that sends and receives information between data centers.
If the bill takes effect, Chinese optical communications company Zhongji InnoLight could be hit. Zhongji InnoLight is known to account for 27% of the global data transceiver market. Most of this corporations' revenue comes from outside China.
Earlier, in 2021, the FCC put China's Huawei and ZTE on a "covered list," saying they posed a threat to U.S. national security. In December last year and again in March this year, it also added Chinese corporations such as DJI to the list.
However, if U.S. corporations' parts are used instead of Zhongji InnoLight's, it could lead to an expense increase for U.S. cloud corporations.