Microsoft presses Trump to scuttle ban on Chinese data centre tech

Microsoft and other companies, along with trade groups, have urged the Trump administration to halt a proposed ban on Chinese optical transceiver imports, three sources familiar with the situation disclosed. Optical transceivers are essential components in AI data centers, enabling data transmission at high speeds within facilities.

The Trump administration reportedly aims to ban US imports of new models of these Chinese optical transceivers, citing potential risks of data theft, malware installation, or service disruptions. Microsoft, which has 35 data centers under construction and another 134 planned in the US, is among the firms making this case to the administration.

They argue that such a ban could significantly damage the US's competitive edge over China in the AI race by slowing down the rollout of data centers. The Information Technology Industry Council (ITI), a technology lobbying group, has also publicly urged the administration not to proceed with the ban. Microsoft declined to comment, and the White House and FCC did not respond to requests for comment.

China's embassy in Washington strongly opposes the US overreaching of national security to unjustly suppress Chinese companies, asserting that China will continue to safeguard the lawful rights and interests of its companies.