SHANGHAI, Aug 5 (Reuters) - China's artificial intelligence

hardware stocks slumped on Wednesday after news that the Trump

administration is drafting a ban on U.S. imports of ⁠new ⁠models

of Chinese data centre components.

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.

The U.S. government is working on a measure to bar imports

of new Chinese optical transceivers, which allow data to travel

over fibre-optic cables at the speed of light within data

centres, Reuters reported.

The news threatens to hit already shaky confidence in

China's AI hardware stocks after a savage sell-off.

Zhongji Innolight shares fell roughly 8% in both Shanghai

and Hong Kong in early trading. The Chinese optical parts maker

generated 62% of its revenue from the U.S. in the first quarter.