The United States is reportedly moving to ban imports of Chinese solar modules (CPO).
The Federal Communications Commission (FCC), the U.S. telecommunications regulatory agency, is preparing to implement a ban on the import of new Chinese optical transceiver modules, according to four sources cited by Reuters. These optical transceiver modules are essential components for high-speed fiber optic data transmission within data centers.
U.S. authorities aim to announce and implement the ban by the end of this year. The measure is intended to prevent the possibility of Chinese companies stealing data or implanting malware through related equipment, thereby disrupting data center operations. However, sources indicate that the FCC may modify the regulatory details or postpone implementation during the final review process.
In response, the Chinese Embassy in the U.S. urged the United States to listen to the objective and rational voices of the economic sectors of both countries and to cease slandering and threatening sanctions against Chinese companies. The embassy warned that it would take all necessary countermeasures against any actions that seriously harm China's interests.
If the import ban is enacted, it would inevitably impact Zhongjixuchuang (中際旭創, InnoLight), the world's largest supplier of solar modules. Zhongjixuchuang was included in the U.S. Department of Defense's list of 'Chinese military-supporting companies' released in June, which has been interpreted in the market as a signal of potential further U.S. regulations. In this scenario, U.S. cloud service companies like Amazon Web Services (AWS) may face increased procurement costs. While U.S. companies Coherent and Lumentum supply CPOs, the reality is that Chinese products offer better cost performance. Additionally, indium phosphide, a key material for solar modules, is predominantly controlled by China in the global supply chain.
According to market research firm Counterpoint Research, Zhongjixuchuang holds a 27% share of the global data center optical transceiver market, making it the leading company. Approximately 90% of Zhongjixuchuang's revenue is generated outside of China.
* This article has been translated by AI.
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