China's Tech Sector Reels as Competing Restrictions on Chips and Optics Collide

Chinese stock markets plunged to one-year lows on Monday as investors grappled with conflicting regulatory signals that simultaneously threaten domestic chipmakers and the country's critical role in global AI infrastructure. The onshore CSI 300 Index fell as much as 2.4%, with semiconductor and optical companies leading the decline. Chipmakers Cambricon Technologies and GigaDevice Semiconductor slumped at least 5% each, while optical transceiver manufacturers Zhongji Innolight and Eoptolink Technology experienced similarly steep drops, signaling investor anxiety about the dual headwinds facing Chinese tech suppliers.