A bipartisan group of senators has introduced legislation designed to prevent Chinese-made optical transceivers from being installed in some of the federal government’s most sensitive national-security systems, expanding Washington’s effort to reduce dependence on technology linked to China. The Securing National Security Systems from Chinese Optical Transceivers Act, sponsored by Sens. Dave McCormick, Ruben Gallego, John Cornyn and John Fetterman, would restrict products from Chinese manufacturers including InnoLight and Eoptolink, whose optical components transmit enormous quantities of information through the fiber-optic networks underpinning modern data centers and artificial-intelligence infrastructure. Supporters argue that reprogrammable firmware and foreign control of critical components create potential cybersecurity and supply-chain vulnerabilities, while technology-industry representatives caution that abruptly removing Chinese suppliers could slow America’s AI infrastructure expansion. The legislation attempts to address that problem through a five-year transition period, limited waivers and a requirement that federal officials assess American and allied production capacity.
Key Takeaways
- The bipartisan legislation would prohibit covered Chinese optical transceivers from national-security systems, targeting InnoLight, Eoptolink and potentially additional adversary-linked manufacturers designated by federal authorities.
- Optical transceivers are essential components of high-speed fiber networks and AI data centers, making Chinese dominance of the supply chain both an economic issue and, according to the bill’s sponsors, a potential national-security vulnerability.
- The legislation provides a five-year transition period and limited waivers, reflecting the practical difficulty of replacing Chinese suppliers when American manufacturers can provide competing technology but currently lack comparable production scale.
In-Depth
Washington’s technological competition with China is moving deeper into the hardware underlying America’s digital infrastructure. A bipartisan Senate proposal would prevent Chinese-made optical transceivers from being used in sensitive federal national-security systems, extending existing restrictions beyond semiconductors to another critical part of modern computing networks.
Optical transceivers move information through high-speed fiber-optic networks and have become indispensable to data centers supporting artificial intelligence. The legislation specifically targets InnoLight and Eoptolink while allowing federal authorities to designate additional adversary-linked suppliers. InnoLight has already been placed on a Pentagon list of companies allegedly connected to China’s military.
The national-security argument is straightforward: Washington should exercise extreme caution before placing components manufactured by a strategic competitor inside networks carrying sensitive government information. Reprogrammable firmware adds another concern because hardware is no longer necessarily a passive component once installed.
But supply-chain security carries costs. Chinese manufacturers occupy a major position in the optical-transceiver market, while American suppliers currently lack equivalent production scale. Industry representatives therefore warn that overly rapid restrictions could impede the enormous data-center expansion required for America’s AI ambitions.
The legislation attempts to reconcile those competing realities rather than mandate an immediate cutoff. Its five-year transition period would give American and allied manufacturers time to increase production, while limited waivers could address shortages. That approach recognizes a larger strategic reality: technological independence cannot simply be legislated into existence. Securing critical infrastructure ultimately requires rebuilding the domestic industrial capacity necessary to replace foreign suppliers without sacrificing American technological competitiveness.
Sources
- https://www.theepochtimes.com/tech/senators-introduce-legislation-to-keep-chinas-technology-out-of-us-government-systems-6096325
- https://www.mccormick.senate.gov/news/press-releases/senators-mccormick-gallego-cornyn-fetterman-introduce-bill-to-keep-chinese-transceivers-out-of-u-s-national-security-systems/
- https://www.reuters.com/legal/litigation/us-lawmakers-aim-keep-chinas-datacenter-tech-out-sensitive-government-systems-2026-09-25/
- https://www.legistorm.com/stormfeed/view_rss/2891647/member/3026/title/gallego-colleagues-introduce-legislation-to-prevent-chinese-optical-transceiver-usage-in-the-united-states.html