In late September 2026, a bipartisan group of senators introduced legislation to block the federal government from buying optical transceivers from Chinese companies, including Zhongji Innolight and Eoptolink.
The proposal follows reports from August 2026 that the Trump administration was drafting a broader ban on Chinese-made hardware in U.S. data centers. Officials fear the components could be used to steal data, install malware or disrupt services.
The moves pose a challenge for major U.S. cloud providers, including Google, Amazon and Microsoft. They rely on Chinese suppliers for components needed to build out AI infrastructure.
The tech companies have been shifting their supply chains out of China, but they remain dependent on Chinese manufacturers for key parts because of their scale and cost-effectiveness.