A bipartisan group of U.S. lawmakers introduced legislation on Friday to prevent the federal government from equipping sensitive systems with Chinese-made optical transceivers, devices that transmit data over fiber-optic cables in AI data centers. The measure, sponsored by Republicans John Cornyn and Dave McCormick and Democrats John Fetterman and Ruben Gallego, would cover products made by China’s Eoptolink and Zhongji Innolight. Supporters say the equipment could give Beijing a way to disrupt access to U.S. AI tools and cloud services. The proposal adds to pressure on Chinese suppliers, which dominate a market considered critical to AI infrastructure. U.S. technology companies, however, have warned that cutting off Chinese suppliers could slow the country’s AI data-center buildout as hyperscalers (large cloud and internet companies) seek alternatives. The Information Technology Industry Council urged the FCC (U.S. communications regulator) on August 13 not to place optical transceivers on a trade blacklist, citing possible effects on data-center deployment and U.S. AI leadership. A Foundation for American Innovation report said U.S. suppliers Coherent and Lumentum offer competitive technology but lack the scale to replace Chinese vendors. If approved, the legislation would provide five years for government compliance and authorize the Secretaries of Commerce and Defense to add other companies to the list.