McCormick, Fetterman cosponsor bill to prevent Chinese-made optical transceivers from being used in sensitive national security systems

U.S. Sen. Dave McCormick, R-Pittsburgh and U.S. Sen. John Fetterman, D-Braddock, are cosponsoring bipartisan legislation to prevent Chinese-made optical transceivers from being used in the federal government's most sensitive national security systems.

According to a news release, 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 Defense 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 McCormick, according to the news release. "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."

"Fiber-optic networks are the digital highways that make our economy run at the speed of light," said Fetterman, according to the news release. "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 Defense 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 and permit limited, renewable waivers when no trusted alternative is available, with each waiver reported to Congress.