Chinese optical stocks slump on reports of proposed US import ban for data center components

Zhongji Innolight leads the decline as Washington considers restricting imports to protect domestic AI infrastructure, adding to broader sell-off in Chinese tech equities.

By Handelsavisen Newsroom · Automated 5 August 2026, 02:22 UTC · 1 min read

Shares of Zhongji Innolight Co. and other Chinese optical component makers fell sharply on Tuesday following reports that the United States is drafting a ban on imports of certain Chinese data center components.

The proposed restriction aims to shield domestic artificial intelligence infrastructure from foreign supply chains, according to Reuters.

6% by the lunch break, driven by a broad-based retreat in artificial intelligence-related equities.

The sell-off in optical stocks contributed to a broader decline in Chinese equity markets.

The blue-chip CSI 300 Index dropped 0.7% while the Shanghai Composite Index lost 0.6% by the lunch break, driven by a broad-based retreat in artificial intelligence-related equities.

The development intensifies existing tensions between US and Chinese technology sectors.

Investors are increasingly pricing in the risk of further trade barriers as Washington seeks to maintain its lead in AI hardware.