# US ban on Chinese AI components unlikely to dent export engine > Source: > Published: 2026-08-05 10:10:43+00:00 # US ban on Chinese AI components unlikely to dent export engine Chinese companies may be able to cushion the impact of the curbs by selling into other fast-growing markets [WASHINGTON/BEIJING] A US ban on Chinese data centre components risks straining the countries’ fragile trade truce, but is unlikely to hurt China’s export engine. The restrictions under Washington’s consideration would target optical transceivers – components that transmit data at high speeds within and between data centres. China exported US$61.6 million of the products to the US in June, accounting for 8.7 per cent of its worldwide shipments but only a fraction of its overall exports, limiting the wider economic impact of any restrictions. The US was previously the biggest destination for Chinese transceivers, but shipments have fallen sharply since US President Donald Trump returned to the White House last year. Malaysia, where investment in data centres has surged, has taken its place, receiving US$260 million of Chinese optical-transceiver exports that month. That shift illustrates how Chinese companies may be able to cushion the impact of US curbs by selling into other fast-growing markets. Overseas shipments of optical transceivers rose 27 per cent in the first half of 2026 from a year earlier. The Federal Communications Commission (FCC) is drafting an order to ban Chinese-made data centre components, Bloomberg reported on Tuesday (Aug 4), citing a person familiar with the matter. Reuters reported earlier that the government agency was considering barring imports of new models of Chinese optical transceivers. Chinese optical-equipment stocks slid on Wednesday, with Zhongji Innolight falling as much as 14 per cent in Shenzhen before paring the decline. US, European and Japanese suppliers rallied, suggesting investors expect the proposed restrictions to hurt Chinese companies while benefiting overseas rivals. Still, a ban would have a limited effect on China’s fast-growing AI-related exports, which accounted for nearly 23 per cent of its overall shipments last year, according to Vicky Zhou, a Greater China economist at Australia and New Zealand Banking Group. Other major AI-related products, including chips and computers, may face less threat from US bans because Chinese companies mainly produce lower-end models sold in South-east Asia, Zhou said. The products contributed to nearly half of China’s export growth earlier this year. “The trend of US stepping up (of) restrictions on Chinese AI is very clear, from semiconductors to AI services and now hardware,” Zhou said. But “China’s AI exports will continue to be solid, supported by higher prices”. The official newspaper of China’s ruling Communist Party warned Wednesday of countermeasures against widening US technology curbs, adding a fresh source of strain to the countries’ fragile trade truce. In a commentary, the *People’s Daily* accused the US of “unilateral bullying” over the FCC’s announcement last week that it would tighten restrictions on some foreign-made robots and power inverters, sectors in which China is a dominant manufacturer. While the newspaper didn’t mention the proposed restrictions on data centre components, its warning underscored the potential for Washington’s expanding campaign against Chinese technology to complicate efforts by Trump and Xi Jinping to stabilise relations before the Chinese leader’s expected US visit next month. “The US measures, under the pretext of ‘non-discrimination’ or ‘national security’, are in essence discriminatory treatment and suppression targeting Chinese enterprises and products,” the newspaper said. The commentary was credited to Zhong Sheng, a Chinese homonym for “Voice of China” that’s often used to convey Beijing’s views on foreign policy. A ban would reinforce the US and China’s decoupling in AI development, as industries await the upcoming AI-focused dialogue between the two countries scheduled in September. Chinese suppliers control more than half of the high-speed transceiver market, leaving major cloud-computing companies with few near-term alternatives and potentially softening the proposed policy, according to Bloomberg Intelligence analyst Sean Chen. Chinese companies may also be able to circumvent the restrictions by shipping products through factories in South-east Asia, depending on how the FCC defines a Chinese optical transceiver, Chen said. The FCC is also considering other steps to prevent blacklisted China-based companies from connecting to US networks, the House Select Committee on China said in a Tuesday report. The committee found that regulatory gaps had allowed three Chinese telecommunications companies barred from directly connecting to US networks to retain links to America’s internet infrastructure. The *People’s Daily* listed earlier FCC actions targeting Chinese telecommunications and video-surveillance equipment, drones and routers, describing them as part of an effort to suppress Chinese technology and contain the country’s industrial development. “This move by the US side runs counter to the current momentum of stabilisation and improvement in China-US relations,” the newspaper said, citing the May summit in Beijing between Xi and Trump. “If the US side is bent on going its own way, China will take resolute countermeasures.” BLOOMBERG Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free. Share with us your feedback on BT's products and services