U.S. Drafts Ban on Chinese Optical Modules, Exposing Mutual Supply Chain Risks

The U.S. Federal Communications Commission is reportedly drafting a ban on imports of Chinese-made optical modules and other data-center components, a move that sent shares of North American suppliers sharply higher.

The proposed curbs could disrupt supply chains for artificial-intelligence infrastructure. Chinese manufacturers currently supply more than half of the world’s key high-speed optical interconnects, which are critical to AI data centers.