WASHINGTON, D.C. — A bipartisan group of senators introduced legislation Sept. 25 that would bar certain Chinese-made optical transceivers from U.S. national security systems, extending existing federal procurement restrictions as Washington moves to reduce reliance on Chinese technology in sensitive communications infrastructure.
The Securing National Security Systems from Chinese Optical Transceivers Act was introduced by Sens. Dave McCormick, R-PA; Ruben Gallego, D-AZ; John Cornyn, R-TX; and John Fetterman, D-PA. The measure was referred to the Senate Homeland Security and Governmental Affairs Committee.
The bill would prohibit federal procurement of covered optical transceivers for national security systems, applying a framework similar to restrictions Congress previously imposed on certain Chinese semiconductors. Optical transceivers move data across high-speed fiber-optic networks, including infrastructure used for artificial intelligence and other data-intensive systems.
The legislation would cover products from InnoLight, Eoptolink and their subsidiaries and affiliates, as well as other companies later designated by the Defense or Commerce departments. It would also apply to covered transceivers containing firmware, software or components from those suppliers.
InnoLight was added in June to the Defense Department’s Section 1260H list of Chinese military companies operating in the U.S. The department’s published designation identifies Zhongji InnoLight Co. as indirectly owned by China’s State-owned Assets Supervision and Administration Commission and directly affiliated with the Ministry of Industry and Information Technology.
The proposed restrictions would not take effect immediately. Suppliers would receive a five-year transition period intended to give U.S. and allied manufacturers time to expand production and develop compliant sources.
The measure would also direct the Commerce Department to assess U.S. and allied manufacturing capacity and develop a strategy for strengthening the optical-transceiver supply chain. Limited renewable waivers would be permitted where a trusted alternative is unavailable, with each waiver reported to Congress.
“We shouldn’t rely on China for technologies that are essential to our national security,” McCormick said, arguing the measure could also create opportunities for U.S. manufacturers, including companies in Pennsylvania.
Gallego said reliance on Chinese suppliers creates “a serious national security vulnerability,” while Cornyn framed the measure as an extension of semiconductor procurement restrictions enacted through the fiscal 2023 defense authorization law. Fetterman said federal fiber-optic networks should use American-made equipment “wherever possible.”
The legislation would address a gap in current procurement law: existing restrictions cover certain Chinese semiconductors, but there is no government-wide prohibition specifically targeting adversary-linked optical transceivers used in national security systems, according to the senators.
The proposal is backed by several manufacturing and national-security advocacy groups, including the Alliance for American Manufacturing, FDD Action, American Compass, the Coalition for a Prosperous America and the New American Industrial Alliance. Those groups argue the restrictions would reduce U.S. dependence on Chinese suppliers while encouraging domestic and allied production.
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