The U.S. government plans to ban the import of new model data center components from China. CICC: In the short term, there will definitely be an impact on sentiment, but in the medium to long term, it is highly likely that the noise will be much louder than the actual effect.

Informed sources have revealed that the U.S. government is drafting a ban that aims to prohibit the import of new models of data center components from China. CICC states that the core function of optical modules is the conversion of optical signals, and they do not themselves store business data. Compared to active devices, their risk boundary and attack capabilities are clearly different. Therefore, whether the FCC security logic cited by the informants is valid and whether the proposed restrictions adhere to the principle of necessity is itself open to debate. Moreover, since 2020, similar narratives have been told many times. The market has consistently worried that Chinese manufacturers would lose market share to North American competitors, but discussions have decreased in the past two yearsbecause after several years of validation, even with industrial policies continually favoring the domestic supply chain in the U.S., the market share of Chinese manufacturers has instead increased. CICC indicated that, therefore, short-term trading revolves around sentiment, mid-term observations focus on regulatory standards, and in the long term, the competition remains centered on products, yield rates, and delivery. Policies may change shipping addresses, but may not necessarily alter who excels at producing optical modules.