US lawmakers aim to keep China's datacenter tech out of sensitive government systems

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A bipartisan group of U.S. lawmakers has introduced legislation to bar Chinese-made optical transceivers from sensitive federal systems, citing national security risks tied to artificial intelligence infrastructure and government communications. The proposed measure specifically targets products manufactured by Chinese companies Eoptolink and Zhongji Innolight, while granting the Secretaries of Commerce and Defense the authority to expand the restriction list. Optical transceivers are critical hardware components used to transmit data over fiber-optic cables, serving as a core foundation for modern AI data center networks. Supporters of the bill warn that Beijing could potentially exploit these components to disrupt access to critical U.S. AI tools, cloud platforms, and government communication networks. Senator Dave McCormick and Senator John Cornyn emphasized that critical government communication and information systems must remain free of foreign interference. If approved, the legislation gives the federal government a five-year window to comply with the new restrictions and remove the covered equipment. Meanwhile, industry groups cautioned that cutting off Chinese vendors could slow domestic AI infrastructure expansion, as U.S.-based alternatives currently lack the necessary manufacturing scale.