Therefore, it is believed to be too early to interpret the proposal as a comprehensive ban on Chinese optical transceivers. In the short term, U.S. customers will find it difficult to eliminate reliance on optical transceivers manufactured in China. If similar restrictions are extended to optical transceivers, it would mark the first time U.S. regulatory controls directly reach the optical interconnects supply chain for AI data centers. The global optical interconnect supply chain for AI data centers remains highly dependent on China’s module manufacturing, packaging, and testing capabilities. However, the rapid growth of demand for AI data centers has also created significant opportunities for Chinese optical module makers.