California Democrats urge pause on new US technology export restrictions to China
They argue unilateral curbs benefit foreign competitors and harm US businesses.
California Democrats are urging the Biden administration to halt plans for new restrictions on US technology exports to China, arguing that unilateral measures could harm American businesses while benefiting foreign competitors. These lawmakers, including Senator Alex Padilla and Representative Zoe Lofgren, expressed concerns that further controls on semiconductor manufacturing equipment could lead to a ‘death spiral’ for longstanding US companies, especially as allies like Japan and the Netherlands have not matched the most stringent US restrictions.
The Commerce Department reportedly plans a new rule to expand US power over exports to China while exempting Japan and the Netherlands, sparking concern among California’s representatives. They argue that additional unilateral export controls should be paused until their impact on US competitiveness in the semiconductor industry is fully assessed.
Why does this matter?
The letter from California Democrats highlights growing resistance to Biden’s semiconductor policies, especially from a state home to major chipmaking equipment firms like LAM, Applied Materials, and KLA. The lawmakers are not seeking to reverse existing restrictions on China but are calling for a more coordinated approach with US allies to ensure that American companies are not disadvantaged.
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