• The proposal would target new Chinese optical transceiver models used to carry data across fibre links inside data centres
  • Its scope and timing remain unsettled, and the FCC could revise or abandon the measure

The fact

The US Federal Communications Commission is drafting a measure that could block imports of new Chinese optical transceiver models, four people familiar with the matter told Reuters. Officials hope to publish the restriction this year, although it could still be changed or withdrawn. The FCC and White House did not respond to requests for comment.

Optical transceivers convert electrical signals into light, allowing data to move between servers and switches over fibre. Chinese companies supply a large share of the global market. Reuters said the proposed measure would probably affect Zhongji Innolight, a major transceiver supplier that the Pentagon added to a list of companies alleged to support China’s military in June. China’s embassy in Washington opposed sanctions against Chinese companies and said Beijing would respond to measures that materially harmed its interests.

The assessment

A final restriction could move regulatory checks to the beginning of data-cententre network procurement. Before approving equipment lists or placing orders, operators, and contractors would need to confirm that the selected transceivers remained permitted for import into the United States.

Optical modules are qualified to work with particular switches, fibre links and operating requirements. Replacing a model after procurement has begun may require another supplier, additional compatibility testing and changes to the delivery schedule. The effect would depend on which manufacturers and product generations the FCC included, and whether existing orders received a transition period. For BTW readers, the proposed rule could make supplier eligibility a design-stage requirement. Projects that check optical components only when orders are placed could find that part of an approved network specification can no longer be sourced.

What to watch

Watch for the FCC’s proposed text, the suppliers and product generations covered, and any exemptions for existing orders or installed equipment. Changes to approved-vendor lists, tenders and component-qualification notices would show whether operators are adjusting network procurement before a restriction takes effect.