Let me talk about the relationship between LYTE fund and China LYTE is an optical communication themed active ETF launched by Roundhill on August 6th, with a rate of 0.65%, listed on Cboe BZX. There are five Chinese companies in the composition of the ETF: Xinyisheng 14.59%, Zhongji Xuchuang 14.22%, Tianfu Communication 7.90%, Yuanjie Technology 5.35%, and Guangxun Technology 4.74%, totaling 46.8%; Lumentum and Coherent from the American market account for just over 30% of the total Why do Chinese companies account for over 40% of ETFs in the United States? Because the largest global shipments of optical communication are all from Chinese companies. In the assembly process of 800G/1.6T optical modules, Zhongji Xuchuang and Xinyisheng are ranked first and second globally, while Tianfu produces optical components, Guangxun produces modules, and Yuanjie produces EML laser chips. Optical modules are high-precision, labor-intensive, and low gross profit jobs that have been beaten down by Chinese manufacturers over the past two decades due to cost and delivery speed Can the United States decouple? Not in the short term, but in the medium to long term. Looking at it in three layers: Upstream chips are still held by the United States: InP lasers (Lumentum, Coherent, Broadcom) and DSPs (Marvell, Broadcom) are mainly in the hands of the United States. Chinese module factories, in turn, also rely on these. So it's a mutual bottleneck, not one-way. Midstream assembly is a real weakness: non Chinese alternative production capacity mainly includes Fabrinet (Thailand), Coherent's own production line, and a small number of Taiwanese and Japanese factories. To take on orders at the scale of AI data centers, capacity expansion will take at least 2-3 years, and costs will significantly increase. The US ban itself has loopholes: Xuchuang and Xinyisheng have already built factories in Thailand in the past two years, and many of their goods are exported from Thailand. According to the concept of "new model import ban", how much can be sealed depends on how the rules are written about the country of origin. The FCC is drafting a plan to ban the import of China's new generation of optical transceiver modules. Ironically, in the same week, Wall Street issued an ETF with nearly half of its position in China - capital voted with real money, indicating that the market believes this supply chain cannot be replaced in the short term. The real outcome is likely not "detachment", but rather an increase in the price of optical modules and an extension of delivery times, with costs borne by US cloud providers.