A government regulator overseeing state-owned enterprises has begun investigating the prevalence of American networking hardware within the country's public-sector cloud clusters. The State-owned Assets Supervision and Administration Commission spent the last few weeks surveying installations to identify dependencies on foreign technology used for AI training and inference.

The review specifically targets Broadcom switches, which may be used in up to 90% of these state-backed deployments, as Beijing weighs curbs to promote domestic hardware independence. This effort follows increased supply chain instability and tension caused by US export controls on advanced semiconductors and high-speed networking components.