--- title: "Chinese Optical Module Stocks Tumble, But Insiders Doubt Blanket US Ban" type: "News" locale: "en" url: "https://longbridge.com/en/news/294958091.md" description: "Chinese optical module stocks slumped on rumors of US FCC import restrictions, but insiders doubt a blanket ban. Despite significant share drops for firms like Zhongji Innolight and Eoptolink, analysts argue that the global supply chain's interdependence and US reliance on Chinese manufacturing make sweeping bans unlikely. Industry sources note that previous tariffs included exemptions due to cloud provider opposition, and companies have long prepared contingency plans for geopolitical risks." datetime: "2026-08-05T11:23:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294958091.md) - [en](https://longbridge.com/en/news/294958091.md) - [zh-HK](https://longbridge.com/zh-HK/news/294958091.md) --- # Chinese Optical Module Stocks Tumble, But Insiders Doubt Blanket US Ban (Yicai) Aug. 5 -- Chinese optical communications stocks slumped today after reports that the US Federal Communications Commission was considering restrictions on imports of new Chinese data center components, but industry insiders said a broad ban on optical module imports is unlikely. Shares of Zhongji Innolight \[SHE: 300308\], a maker of high-speed optical transceivers, plunged nearly 14 percent before closing down 7.3 percent. Rival Eoptolink Technology \[SHE: 300502\] dropped more than 10 percent intraday and finished 5.3 percent lower, while TFC Optical Communication \[SHE: 300394\], a manufacturer of optical components, fell nearly 9 percent before rebounding to close 2.3 percent higher. Company representatives told Yicai they were aware of the reports but declined to comment because the FCC has yet to issue any restrictions affecting the sector. The selloff reflected investor concerns over the sector, although analysts said the global nature of the optical communications supply chain makes sweeping restrictions difficult to implement. People familiar with the sector told Yicai that similar reports have surfaced multiple times in recent years and should not be overinterpreted. They added that companies across the industry have spent the past five or six years preparing for geopolitical risks, leaving them better positioned to respond should new US regulations eventually take effect. **US Reliance Limits Ban's Reach** Industry sources said US AI infrastructure remains heavily dependent on Chinese optical modules. Seven of the world's top 10 optical module makers are Chinese companies, while US rivals lack sufficient production capacity and trail in some key technologies. They also pointed to previous trade measures as evidence that a blanket ban is unlikely. After additional tariffs were imposed in 2025, optical modules were among the first products added to the tariff exemption list following opposition from US cloud service providers. As a result, they expect any future restrictions to include exemptions. A representative from TFC Optical Communication, which supplies optical components used in optical modules, said any import ban, if implemented, would have a more direct impact on optical module manufacturers. In its latest research note, the communications research team at Guotai Haitong Securities said the optical communications industry is one of the world's earliest and most globalized technology sectors, making it heavily dependent on international supply chains. The brokerage said the global optical communications ecosystem benefits not only Chinese companies but also major US chip and component suppliers upstream, while downstream cloud service providers rely on optical communications products to support data center expansion. Blanket restrictions would therefore hurt the global industry, making the likelihood of such measures "close to zero." The report added that both North American cloud service providers and Chinese optical module and component manufacturers began preparing for geopolitical risks five or six years ago and have contingency plans in place should new regulations ultimately be introduced. Editor: Emmi Laine ### Related Stocks - [300502.CN](https://longbridge.com/en/quote/300502.CN.md) - [300308.CN](https://longbridge.com/en/quote/300308.CN.md) - [300394.CN](https://longbridge.com/en/quote/300394.CN.md) - [601211.CN](https://longbridge.com/en/quote/601211.CN.md) - [02611.HK](https://longbridge.com/en/quote/02611.HK.md) ## Related News & Research - [China AI hardware stocks slump after news US plans to ban imports of Chinese components](https://longbridge.com/en/news/294894665.md) - [Rahman Hydraulic Tin Sdn Bhd To Temporarily Suspend Mining Operations](https://longbridge.com/en/news/296213949.md) - [Malaysia Smelting subsidiary Rahman Hydraulic Tin suspends Perak mining operations on regulator order](https://longbridge.com/en/news/296204988.md) - [Sanginita Unit Agastya Green Energy Unveils ₹7,800 Crore Solar Manufacturing Expansion](https://longbridge.com/en/news/296006431.md) - [Buffalo Potash Completes Second Vertical Well and Advances to Horizontal Drilling Phase at Disley Initial Production Module | BLPTF Stock News](https://longbridge.com/en/news/296219789.md)