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Summary of article:
Microsoft and several companies lobbied the Trump administration to oppose a ban on imports of Chinese optical communications, believing it would affect supply chains and the construction of AI data centers. The United States is studying sanctions on national security grounds, and Congress has also stepped up efforts to promote relevant sanctions bills.
American technology giantsMicrosoft It is rumored that they will join hands with other companies and industry organizations to lobbytrump The government has abandoned its plan to ban imports of Chinese optical communications, warning that the move could slow the construction of US artificial intelligence (AI) data centers and weaken America’s edge in the AI race with China.
Citing three people familiar with the matter, Reuters reported that the Trump administration is considering banning the import of new models of Chinese optical transceivers (optical communications). This type of equipment transmits data at high speed within data centers via optical fiber. Some data centers require millions of optical cables to connect servers, routers, and switches.
The United States is concerned that China could use these tools to steal data, plant malware, or interfere with the operations of American data centers. The US Federal Communications Commission (FCC) is currently studying the relevant ban; However, people familiar with the matter said Microsoft and other companies believe the ban could slow the construction of US data centers and “irreparably damage” the US’s lead over China in the AI race.
Reuters first revealed the sanctions plan in August. Microsoft and several other companies met with officials from the White House Office of Science and Technology Policy and the National Security Council in September to express concerns that the ban could disrupt the economy, the report said.supply chain Worry.
John Miller, executive vice president and general counsel for policy at the Information Technology Industry Council (ITI), warned that the ban could also halt data center construction. He pointed out that many cloud service companies have purchased the necessary AI chips, but without optical communication, these chips will not connect and be used and will have to sit idle.
According to data from market research organization Counterpoint Research, Chinese companies account for about two-thirds of the global optical communications market, with companies such as Xinyi Sheng and Zhongji InnoLight occupying the leading positions. Zhongji Innolite was previously included in the US Department of Defense’s list of companies suspected of having ties to the Chinese military.
Although American companies Coherent and Lumentum also make similar products, according to a report by the American Innovation Foundation, the production levels of both companies are still not high enough to replace Chinese suppliers.
Data from market intelligence company Cleanview shows that Microsoft currently has 35 data centers under construction in the United States, with another 134 in the planning stage.
A report released by Morgan Stanley in October said the Trump administration was considering limiting restrictions on Chinese optical communications to a transmission rate of 3.2 terabits per second (Tbps). Such products are not expected to begin production expansion until 2028 and be deployed on a large scale in 2029.
The report pointed out that using this technical specification as a limitation of the ban can not only avoid the immediate impact on US companies and China-US relations, but also give US optical communications manufacturers time to expand production capacity. Two people familiar with the matter revealed that the FCC is considering the plan but has not yet made the related arrangement public.
However, US lawmakers may not want to wait. Several congressmen from the Democratic and Republican parties have proposed a bill in September to ban the federal government from using Chinese-made optical communications in sensitive government systems; The Chinese Embassy in the United States responded that China firmly opposes the United States’ generalization of national security concepts and abuse of state power to unreasonably suppress Chinese companies, and will continue to firmly protect the legitimate rights and interests of Chinese companies.
Summary FAQ
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Microsoft and other companies believe that if the import of Chinese optical communications is banned, data centers will lack key connection equipment, the construction of AI data centers will slow down, and even purchased AI chips will be prevented from being put into use, thereby weakening the United States’ lead in AI competition.
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The United States is concerned that Chinese optical communications could be used to steal data, plant malware, or interfere with the operations of American data centers. Therefore, the FCC is studying relevant restrictions and evaluating phased-in restrictions on imports with high technical thresholds.
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Counterpoint Research reported that Chinese companies account for about 2/3 of the global optical communications market and have a dominant position. Although there are manufacturers such as Coherent and Lumentum in the United States, its production capacity is still not enough to completely replace Chinese suppliers.
