Democratic lawmakers from California are urging the Biden administration to pause its plans to impose new restrictions on technology exports to the Chinese mainland. The lawmakers argue that additional controls could trigger a \"death spiral\" for longstanding U.S. companies, potentially weakening their competitive edge in the global market.
According to a Reuters report, Senator Alex Padilla and Representative Zoe Lofgren expressed concerns that unilateral export restrictions would benefit foreign rivals at the expense of U.S. businesses. They emphasized the need for thorough justification to ensure that such measures do not harm U.S. competitiveness in advanced semiconductors and semiconductor manufacturing equipment.
The letter addressed to Alan Estevez, who oversees export controls at the U.S. Commerce Department, highlighted that U.S. allies like the Netherlands and Japan have also imposed restrictions on equipment exports to China. However, these nations have not implemented as stringent measures as those proposed by the United States.
The call for a pause reflects growing pushback against President Biden's semiconductor policy among Democrats from California, home to leading chipmaking equipment companies such as Lam Research, Applied Materials, and KLA Corporation.
Reference(s):
CA Dems fear China curbs to cause 'death spiral' for U.S. tech firms
cgtn.com
