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

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.