Bipartisan senators introduce bill to ban Chinese optical transceivers from US national security systems

On September 25, 2026, a bipartisan group of U.S. senators introduced the Securing National Security Systems from Chinese Optical Transceivers Act. The bill aims to ban Chinese-made optical transceivers, critical for high-speed data transmission in AI data centers, from sensitive federal networks. Proponents warn that dominance by Chinese firms like InnoLight poses espionage and disruption risks, while tech groups caution that a ban could slow U.S. AI infrastructure deployment.

Introduction of the bipartisan bill

• ▪The proposed Securing National Security Systems from Chinese Optical Transceivers Act specifically targets optical transceivers manufactured by Chinese companies Eoptolink and Zhongji Innolight, also known as InnoLight
• ▪On Friday, September 25, 2026, U.S. Senators Dave McCormick, Ruben Gallego, John Cornyn, and John Fetterman introduced the Securing National Security Systems from Chinese Optical Transceivers Act.
• ▪The proposed Securing National Security Systems from Chinese Optical Transceivers Act would prohibit the federal government from procuring covered Chinese-made optical transceivers for sensitive national security systems

Security concerns and restricted companies

• ▪Supporters of the Securing National Security Systems from Chinese Optical Transceivers Act argue that Chinese-made optical transceivers contain reprogrammable firmware that Beijing could exploit to disrupt access to U.S. artificial intelligence tools and cloud networks
• ▪In June 2026, the Pentagon added Chinese optical transceiver manufacturer Zhongji Innolight, also known as InnoLight, to its list of alleged Chinese military-backed companies.
• ▪Under the proposed legislation, the Secretaries of Commerce and Defense are authorized to add additional adversary-linked companies to the restricted optical transceiver procurement list.

Transition period and procurement waivers

• ▪The Securing National Security Systems from Chinese Optical Transceivers Act's five-year transition period before the procurement ban takes effect allows trusted American and allied manufacturers to expand production and minimize federal supply chain disruptions.
• ▪The Securing National Security Systems from Chinese Optical Transceivers Act permits limited, renewable waivers to the procurement ban when no trusted alternative technology is available.

Efforts to boost domestic production

• ▪The Securing National Security Systems from Chinese Optical Transceivers Act directs the Department of Commerce to assess allied production capacity and develop a strategy to strengthen trusted supply chains.
• ▪U.S.-based firms Coherent and Lumentum sell competitive optical transceiver technology but currently lack the manufacturing scale to fully replace Chinese vendors.
• ▪U.S. Senator Dave McCormick stated that the bipartisan Securing National Security Systems from Chinese Optical Transceivers Act would provide American manufacturers with the opportunity to expand domestic production of optical transceiver technology

Global market and AI significance

• ▪The Information Technology Industry Council urged the Federal Communications Commission on August 13, 2026, to refrain from blacklisting optical transceivers, citing potential disruptions to U.S. artificial intelligence leadership.
• ▪Chinese manufacturers currently dominate the global market for optical transceivers, controlling approximately 70 percent of the global optical module market.
• ▪Optical transceivers, which transmit data over fiber-optic cables at high speeds, are critical components in U.S. infrastructure powering artificial intelligence and cloud networks