CNBC reported that the increasing reliance of U.S. AI data centers on Chinese supply chains for critical components such as transformers, batteries, and optical equipment has raised concerns in Washington. Last week, President Donald Trump signed an executive order declaring a national emergency to address threats posed by foreign adversaries to the U.S. bulk-power system and authorizing the Department of Energy to restrict related transactions. The report noted that China holds nearly 30% of the market share in certain transformer and switchgear markets, accounts for over 40% of U.S. battery imports, and supplies approximately two-thirds of global optical transceivers. The Trump administration is working to reduce this dependence and is reportedly drafting a ban on imports of Chinese optical transceivers.