US lawmakers aim to keep China's tech out of sensitive government systems (www.rnz.co.nz)

A bipartisan group of US lawmakers has introduced legislation aimed at prohibiting the federal government from using Chinese-made optical transceivers in sensitive government systems. These devices, essential for AI data centers, enable rapid data transmission over fiber-optic cables and are crucial to the US's AI infrastructure development. The proposed bill primarily targets components produced by Chinese companies Eoptolink and Zhongji Innolight, which some lawmakers argue could pose national security risks by enabling foreign interference in critical communication systems. The significance of this legislation lies in its potential impact on the supply chain for AI technologies in the US. While supporters emphasize the need for secure and reliable systems free from foreign influence, critics warn that the move may slow the AI infrastructure rollout by limiting access to established Chinese suppliers, which currently dominate the optical transceiver market. US competitors, such as Coherent and Lumentum, do offer alternatives but lack the scalability needed to fully replace Chinese vendors. If passed, the legislation would grant the Secretaries of Commerce and Defense authority to expand the list of restricted companies, potentially reshaping the landscape of AI hardware supply in the US.