Senators Mccormick, Gallego, Cornyn, Fetterman Introduce Bill to Keep Chinese Transceivers Out of U.S. National Security Systems

WASHINGTON — U.S. Senators Dave McCormick (R-PA), Ruben Gallego (D-AZ), John Cornyn (R-TX), and John Fetterman (D-PA) today introduced the Securing National Security Systems from Chinese Optical Transceivers Act, bipartisan legislation to prevent Chinese-made optical transceivers from being used in the federal government’s most sensitive national security systems. Chinese manufacturers have become major suppliers of optical transceivers, creating U.S. alliance on these critical components which move data through high-speed fiber-optic networks, including the networks powering artificial intelligence. Because advanced transceivers can contain reprogrammable firmware, their use in national security networks can create potential supply-chain and security risks. In June, the Department of War added major Chinese manufacturer InnoLight to its Section 1260H list of Chinese military companies, but current law does not impose a government-wide prohibition on adversary-linked optical transceivers in the systems carrying some of America’s most sensitive information. The bill extends an existing federal procurement restriction for semiconductors to covered optical transceivers used in critical systems. It gives suppliers five years to develop compliant sources and provides waivers where necessary to protect supply and national security. “We shouldn’t rely on China for technologies that are essential to our national security,” said Senator McCormick. “This bipartisan bill will help secure our networks and give American manufacturers—including the incredible companies and workers we have right here in Pennsylvania— the opportunity to step up, build more of this technology at home, and compete.” “Optical transceivers are a critical part of America’s modern communications infrastructure, and we need to make sure that infrastructure is secure,” said Senator Gallego. “Our reliance on China to produce these transceivers creates a serious national security vulnerability. This legislation protects our most sensitive systems and invests in Arizona manufacturers, who are already helping build a secure supply chain here at home.” “Critical government communication and information systems must be safe, reliable, and free of any foreign interference, but the use of Chinese technology undermines that mission,” said Senator Cornyn. “I am proud to cosponsor Senator McCormick’s Securing National Security Systemsfrom Chinese Optical Transceivers Act, which will extend the commonsense procurement restrictions I worked to include in the Fiscal Year 2023 NDAA and support American jobs.” “Fiber-optic networks are the digital highways that make our economy run at the speed of light,” said Senator Fetterman. “Just like we use American-made steel to build federal highways and bridges, we should also be using American-made equipment in our fiber-optic networks wherever possible. I am proud to join my colleagues to ensure our critical information networks do not rely on Chinese-made optical transceivers.” The Securing National Security Systems from Chinese Optical Transceivers Act would close that gap by extending safeguards Congress has already established for Chinese semiconductors to optical transceivers used in national security systems. The legislation would: Prohibit federal procurement of covered optical transceivers for national security systems, building on the existing federal framework restricting certain Chinese semiconductors. Cover InnoLight, Eoptolink, and their subsidiaries and affiliates, as well as additional adversary-linked companies designated by the Secretary of War or Secretary of Commerce, including covered transceivers that incorporate their firmware, software, or components. Provide a five-year transition period before the prohibition takes effect, allowing trusted American and allied manufacturers time to expand production while minimizing disruptions to federal supply chains. Direct the Department of Commerce to assess U.S. and allied production capacity and develop a strategy to strengthen trusted optical transceiver supply chains. Permit limited, renewable waivers when no trusted alternative is available, with each waiver reported to Congress. The Securing National Security Systems from Chinese Optical Transceivers Act is supported by the following stakeholders: Scott Paul, President, Alliance for American Manufacturing: “For too long, China has pursued dominance in strategically important industries while benefiting from access to markets that reinforce that position. Federal taxpayer dollars should not be used to deepen America’s dependence on Chinese manufacturers for critical technologies. Senator McCormick’s legislation sends an important signal that the United States is serious about securing strategic supply chains, rebuilding domestic manufacturing capacity, and strengthening the industrial base needed to compete and lead in the technologies of the future.” Alexandria Paolozzi Moore, Senior Director of Government Relations, FDD Action: “America’s national security systems are increasingly dependent on high-speed optical networking. Yet our reliance on adversary-controlled components in systems that underpin national defense creates serious security vulnerabilities. FDD Action endorses the Securing National Security Systems from Chinese Optical Transceivers Act of 2026 because it closes a gap in existing semiconductor security law. That gap allows CCP-linked suppliers to operate at a critical point where our data flows. We support this legislation and urge its expeditious consideration.” Daniel Kishi, Senior Policy Advisor, American Compass: “China’s dominance of the optical transceiver market has exposed a major vulnerability at the heart of America’s technological infrastructure. The Securing National Security Systems from Chinese Optical Transceivers Act would keep Chinese optical transceivers out of the federal government’s critical systems and safeguard sensitive government networks from the risks they pose.” Coalition for a Prosperous America: “The Defense Department has already named InnoLight — the world’s largest optical transceiver maker — a Chinese military company, yet its hardware still sits inside America’s data centers and national security systems. That’s indefensible. Chinese firms control roughly 70 percent of the global optical module market because the CCP targeted this technology for domination, and Beijing won’t let a single American-made transceiver into its own data centers. Senator McCormick’s bill sends a clear demand signal to the American manufacturers already investing in domestic capacity and ensures only trusted hardware runs our national security systems. CPA is proud to support it and urges Congress to pass it without delay.” New American Industrial Alliance: “As China continues its efforts to infiltrate cutting-edge American technologies, it’s more important than ever for Congress to take action to protect America’s technological superiority. By extending the federal ban on Chinese-linked chips to optical transceivers in national security systems, the Securing National Security Systems from Chinese Optical Transceivers Act would close a potential backdoor into our most sensitive networks while giving industry time to build a trusted supply. NAIA thanks Senator McCormick for his tireless work to ensure American security and technological superiority.” ###