Sources: China's government asked Alibaba, ByteDance, and others to report on their plans to buy Nvidia RTX Pro 5500, saying it intends to approve the purchases (Qianer Liu/The Information)

A bipartisan group of US lawmakers introduced legislation on Friday to prevent the federal government from using Chinese-made components in sensitive government systems. These optical transceivers are crucial for transmitting data in AI data centers, with millions needed in some facilities. The bill targets optical transceiver makers China’s Eoptolink and Zhongji Innolight, which hold a dominant market position.

The restriction, introduced by Republicans John Cornyn and Dave McCormick, along with Democrats John Fetterman and Ruben Gallego, aims to prevent China from potentially using these devices to disrupt US AI tools and cloud access. Supporters argue that reliance on China for essential technologies compromises national security. McCormick and Cornyn expressed concerns that using Chinese technology undermines the safety and reliability of government communication and information systems.

Innolight, recently added to a Pentagon list of alleged Chinese military-backed companies, did not comment on the legislation. The US industry warned that such a move could hinder the US AI infrastructure buildout, giving China an advantage as companies seek alternative suppliers. The Information Technology Industry Council, a tech lobbying group, urged the FCC not to add optical transceivers to a trade blacklist due to potential supply disruptions affecting data center deployment and US AI leadership.

If approved, the government would have five years to comply, with the Secretaries of Commerce and Defense empowered to add more companies to the list.