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Trump Drafts Ban on Chinese Data-Center Parts, Hits AWS

8/4/2026

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Summary

Story summary

The Trump administration is drafting a ban on imports of Chinese data-center components, including optical transceivers.
The ban would target Zhongji Innolight, which the Pentagon added to its alleged Chinese military-backed list in June.
Analysts warn that U.S. cloud providers like Amazon Web Services could face higher costs, causing Coherent shares to rise 13% and Lumentum shares to rise 10% while Amazon fell more than 2% in pre-market trade.

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Story summary

The Trump administration is drafting a ban on imports of Chinese data-center components, including optical transceivers.
The ban would target Zhongji Innolight, which the Pentagon added to its alleged Chinese military-backed list in June.
Analysts warn that U.S. cloud providers like Amazon Web Services could face higher costs, causing Coherent shares to rise 13% and Lumentum shares to rise 10% while Amazon fell more than 2% in pre-market trade.