Trump admin opens new front in China AI contest with data center ban proposal

NewsTue, 04 Aug 2026 14:21:01 UTC2 hours ago
Trump admin opens new front in China AI contest with data center ban proposal

Sources close to the Trump White House have claimed that the administration is now working on a new set of rules to blacklist made-in-China components for anyone building a data center in America, according to Reuters.

The governments in Washington and Beijing have traded bans and restrictions to slow down the other in the race to lead AI technology over the past year. That standoff has now expanded to new fronts as data center gear could now join the growing list of items that have to be locally sourced for the AI buildout.

What AI components has the US banned from China?

Citing people familiar with the process, Reuters said that the United States’ Federal Communications Commission (FCC) is planning a proposal to close its borders to new Chinese-made optical transceivers.

An optical transceiver is a device that transmits data over fiber-optic cables running through data centers.

If the plan goes forward as planned, it will add to Cryptopolitan’s July report about the US ban on the importation of Chinese humanoid robots. There are already existing limitations on the use of Chinese models on government-issued devices.

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