California Democrats Challenge Biden's Tech Export Restrictions

California Democrats are urging the Biden administration to halt plans for new restrictions on U.S. tech exports to China. They argue these unilateral curbs harm U.S. businesses while benefiting foreign competitors. The pushback reflects concerns over national security justifications and the lack of similar constraints from allies.

California Democrats are calling for the Biden administration to pause reported plans to impose additional restrictions on U.S. technology exports to China, arguing that such unilateral measures would harm American businesses.

Recent years have seen Washington implement a series of export restrictions on chips and chipmaking equipment, prompted by concerns that China could use these technologies to strengthen its military capabilities. While the Netherlands and Japan have also imposed export limitations, they have not matched the severity of U.S. measures.

Last month, Reuters disclosed the Commerce Department's plans to broaden U.S. authority to block semiconductor manufacturing equipment exports from specific foreign nations to Chinese chipmakers, excluding Japan and the Netherlands.

Senator Alex Padilla and Representative Zoe Lofgren, in an August 13 letter, cautioned that further controls could devastate long-established U.S. firms, especially given the less stringent export restrictions of American allies.

The letter's call for a pause highlights growing dissent among California Democrats regarding Biden's semiconductor policy. The dissent underscores concerns about national security benefits versus economic competitiveness for U.S. companies.

(With inputs from agencies.)