# China AI hardware stocks fall as U.S. drafts ban on Chinese data-center components

_Tuesday, August 4, 2026 at 9:42 PM EDT · Power, AI, Infrastructure · Latest · Tier 2 — Notable_

![China AI hardware stocks fall as U.S. drafts ban on Chinese data-center components — Primary](https://www.srnnews.com/media/2026/08/1785895517489106Qiu5misrbQ.jpg?x39338)

China's artificial intelligence hardware stocks slumped after news that the Trump administration is drafting a ban on U.S. imports of new models of Chinese data centre components, Reuters reported from Shanghai.

The CSI300 Telecommunication Services Index tumbled 6% in early trading. Export-dependent data centre component makers including Zhongji Innolight, Eoptolink Technology and Suzhou TFC Optical Communications all opened sharply lower.

Reuters reported the U.S. government is working on a measure to bar imports of new Chinese optical transceivers, which move data over fibre-optic cables within data centres. Zhongji Innolight shares fell roughly 8% in both Shanghai and Hong Kong in early trading. The company generated 62% of its revenue from the U.S. in the first quarter.

The news adds pressure after a prior sell-off in China's AI hardware stocks, Reuters said.

## Sources

- [Reuters](https://srnnews.com/china-ai-hardware-stocks-slump-after-news-us-plans-to-ban-imports-of-chinese-components/)

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