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Wednesday, October 7, 2026
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China · Regulation

US Bill Targets Chinese Components in Government AI Systems

A bipartisan group of United States senators has introduced legislation that would bar sensitive federal systems from using optical transceivers made by two Chinese companies.

Optical transceivers move data over fibre cables and are essential to the large computing clusters used for artificial intelligence. The bill names Eoptolink and Zhongji Innolight, whose products form part of a Chinese supply chain that lawmakers say could expose national-security networks to disruption or foreign interference.

The measure would extend procurement restrictions already applied to other categories of Chinese technology. Federal agencies would receive five years to comply, while the commerce and defence secretaries could add other manufacturers to the restricted list.

The proposal is not law. It must pass both chambers of Congress and receive presidential approval before the procurement ban can take effect. Its supporters include Republican senators Dave McCormick and John Cornyn and Democratic senators Ruben Gallego and John Fetterman.

Technology groups have warned that an abrupt restriction could slow construction of American data centres because domestic suppliers cannot yet match the scale of Chinese production. The five-year transition is intended to give agencies and contractors time to develop alternatives, but the supply question will remain central as Congress considers the bill.

Official bill announcement

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