US Plans Ban on Chinese Data Center Components

President Donald Trump's administration is preparing to ban imports of new Chinese made components used in data centers, according to four sources familiar with the plans who spoke to Reuters. The measure is intended to protect infrastructure used for artificial intelligence development from data theft, malware and operational disruption.

The Federal Communications Commission is reportedly planning to prohibit the import of new Chinese optical modules, which transmit data through fiber optic cables in data centers. According to the sources, the measure is expected to be announced later this year.

The Chinese Embassy in Washington warned that Beijing would take all necessary measures to safeguard its interests.

The ban could have a significant impact on Zhongji Innolight, one of the world's largest manufacturers of optical modules. At the same time, it could benefit US manufacturers, whose share prices rose following the reports. The restrictions could also increase costs for US cloud service providers, including Amazon Web Services.

(Reuters, bak)