According to media reports California Democrats are calling on the Biden administration to hold off on imposing fresh restrictions on technology exports to China, due to increasing concerns that the US’s unilateral curbs are benefitting foreign competitors while undermining US companies.
Over the past few years, the US has been imposing a growing list of restrictions on the exports of semiconductor and chipmaking equipment to China, worried that the technology could be used to help the fast-growing Chinese military and security services.
Both the Netherlands and Japan, where the likes of ASML and Tokyo Electron are major suppliers of chip making equipment, have restricted equipment exports to China. However, they haven’t adopted some of the toughest measures put in place by the US.
Now, according to reports, a growing number of US politicians are arguing that plans for further controls being discussed by the administration could send, “US companies into a death spiral," as Asian and European competitors avoid imposing export curbs on their own companies.
While not dismissing the need for curbs they are calling on the US government to pause the imposition of additional unilateral export controls while seeking to examine how those controls might damage US competitiveness in advanced semiconductors and semiconductor manufacturing equipment.
These calls from politicians highlight a growing pushback against Biden's semiconductor policy, especially among Democrats from California, where the country’s top chipmaking equipment companies are located.
