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US weighs China parts ban

US weighs China parts ban

Microsoft is urging the Donald Trump administration to drop proposed restrictions on imports of Chinese optical transceivers, warning that they could disrupt data-center expansion and weaken the United States’ ability to compete in AI. China accounts for about two-thirds of the global market for these devices, and U.S. companies may not be able to replace Chinese suppliers quickly. Microsoft has 35 data centers under construction in the United States and 134 more in its future plans. Officials are considering limiting the restrictions to devices with speeds of 3.2 terabits per second—products not expected to be manufactured at scale before 2028 or widely installed until 2029—while the Federal Communications Commission has yet to issue a final decision.

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