Gallego, Colleagues Introduce Legislation to Prevent Chinese Optical Transceiver Usage in the United States

Legislation would restrict adversary-linked technology from sensitive federal networks while strengthening trusted U.S. and allied supply chains WASHINGTON – Last week, Senators Ruben Gallego (D-AZ), Dave McCormick (R-PA), John Cornyn (R-TX), and John Fetterman (D-PA) 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. reliance 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. 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. “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.” “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.” “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 Systems from 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. Read the full letter HERE .