The Trump administration is reportedly preparing to restrict imports of Chinese components used in data centres as part of efforts to curb China’s rapid advancement in artificial intelligence technology. According to sources familiar with the matter, the Federal Communications Commission (FCC) is developing a rule to prohibit US imports of Chinese optical transceivers, critical hardware that enables data transmission over fiber-optic cables within data centres. Officials are aiming to finalize and publish the proposed measure by the end of this year.

The FCC’s move reflects growing concerns within the US government about potential security risks posed by Chinese-made technology embedded in American infrastructure. Experts warn that such components could enable Chinese firms to steal data, install malware, or disrupt critical services if incorporated into US networks. While the proposed restrictions remain subject to change or cancellation, they signal an intensified US effort to limit China’s technological influence in strategic sectors.

The United States has been a global leader in AI innovation, with major companies like OpenAI, Anthropic, Google, and semiconductor manufacturer Nvidia driving advancements. However, China’s accelerated development in AI, chip manufacturing, and robotics has unsettled markets and created divisions among US technology stakeholders. Chinese firms dominate the global market for optical transceivers, posing challenges for US efforts to expand domestic AI infrastructure, which has seen delays amid competition from China’s expansion of its own data centre capacity.

This move follows recent actions by the FCC, which last month announced a ban on the import of advanced humanoid robots from China. The administration is also reportedly considering restrictions on the use of Chinese open-source AI models. Meanwhile, US Treasury Secretary Scott Bessent has indicated the possibility of sanctions targeting China for intellectual property theft and data breaches.

Requests for comment from the FCC and White House were not immediately returned. The development highlights the broader trajectory of US-China competition in emerging technologies, as Washington seeks to secure critical infrastructure and maintain its technological edge.