German Media: It Will Be Very Difficult for the U.S. to Do Without Chinese-made New Optical Transceivers

The German publication Wirtschaftswoche has taken note of the news that the United States is planning to ban imports of Chinese-made new optical transceivers.

A recent article published by Germany's Wirtschaftswoche on Wednesday (August 5) focused on the U.S. plan to prohibit imports of key data center components made in China. According to Reuters, the Federal Communications Commission (FCC), which regulates telecommunications in the U.S., is developing a measure aimed at banning imports of newly developed Chinese optical transceivers. These devices enable data to be transmitted at light speed through fiber optics within data centers. Relevant officials hope to announce this ban this year, aiming to prevent Chinese companies from stealing data, implanting malicious software, or disrupting services in American data centers.

The article states: "The ban planned by President Trump could trigger unpredictable market turbulence, particularly affecting the rapidly growing AI industry."

Author Sebastian Schug further pointed out that if the U.S. bans new products from Chinese data center equipment manufacturers, it could significantly impact Chinese firms Zhongji Innolight and Eoptolink Technology: "Among just four Chinese companies—Zhongji Innolight, Eoptolink Technology, Dongshan Precision, and OptoTech—these four already account for 55% of the global market share. Such a high market share means it is virtually impossible to completely eliminate Chinese products from the global market."

The article continues: "Whether market forces will be enough to deter Trump remains uncertain. The president’s series of actions on tariffs have already demonstrated that relying solely on rational analysis makes it extremely difficult to predict his next move. The market has recognized this fact—so as soon as news about potential import restrictions emerged, the stock prices of Zhongji Innolight and Eoptolink Technology came under pressure. In contrast, American manufacturers holding around 22% of the market share saw a positive boost from this news."

Original source: toutiao.com/article/1872816123176971/

Disclaimer: The views expressed in this article are those of the author alone.