The Federal Communications Commission (FCC), which oversees the U.S. telecom industry, is reportedly working on a proposal to ban Chinese-made optical transceivers from artificial intelligence (AI) data centers in the U.S.
Officials hope to publish it this year, when it would take effect.
U.S. companies also make the devices that convert electronic data into light for transmission over fiber-optic cables, but Bob Maginnis, a national security and military affairs analyst whose expertise on China comes mainly through his broader background in U.S. defense strategy, military affairs, and international security cooperation, says China has been stealing American technology for years, and they are finally catching up to us.
"While there is a money issue, ours tend to be a little advanced," he tells AFN. "But we're rapidly being overtaken by Chinese products."
Chinese versions are also much cheaper, and American-made transceivers often rely on Chinese manufacturing.
"The network in which they operate is also a vulnerability," Maginnis notes.
He says the current FCC proposal to ban the optical transceivers and potentially other Chinese-made tech would leave existing equipment in place, at least initially.
"If we're going to allow China's state-directed industrial system to become totally embedded in our critical infrastructure, our data centers, then we've got to distinguish what is allowed and what isn't allowed," he submits.
He says banning Chinese electronics is only one piece of the puzzle. The greater challenge is that AI models themselves are advancing rapidly, making it essential for the United States to remain at the forefront of the technology.
"If you have malware that is embedded in whatever, or they're using AI to find vulnerabilities, the compromise is complete," Magginis warns, adding, "What isn't tethered to the internet today?"
According to Reuters, President Donald Trump drew attention during his first term to alleged intellectual property theft by Chinese firms and state-sponsored spying by Huawei, which the company denies, but he has taken a less aggressive approach during his second term.
