CA Democrats worry restrictions on China could lead to a 'death spiral' for U.S. tech companies
California Democrats are expressing concerns that restrictions on China could lead to a "death spiral" for U.S. tech companies. They believe that decreasing access to the Chinese market may significantly impact the competitiveness and growth of these firms. The potential fallout from these curbs raises alarms among party members who advocate for a more balanced approach to ensure the stability of the tech sector.
TroibNews 
Democratic legislators from California have expressed opposition to the Biden administration's suggested plans to implement new technology export limits to China. They argue that imposing additional restrictions could severely harm major US firms, according to a report by Reuters on Wednesday.
The report indicated that these California-based Democratic lawmakers believe that "unilateral curbs benefit foreign rivals at the expense of U.S. businesses."
In a written plea to Alan Estevez, who is in charge of export controls at the Department of Commerce, Senator Alex Padilla and Representative Zoe Lofgren stated, "We ask that you pause additional unilateral export controls until you have adequately justified that such controls will not damage U.S. competitiveness in advanced semiconductors and semiconductor manufacturing equipment."
The legislators pointed out that U.S. allies have not engaged in the imposition of comparably severe export restrictions towards China concerning their companies.
Reuters highlighted that this opposition marks an increasing concern among California's Democrats regarding the Biden administration's policies on semiconductors. California is notably the base for leading semiconductor equipment firms such as LAM, Applied Materials, and KLA.
The report also pointed out the international landscape, noting that while countries like the Netherlands and Japan—home to prominent chip equipment makers ASML and Tokyo Electron—have set their own export limitations to China, they have not reached the level of the most extreme measures that the U.S. has adopted.
Thomas Evans for TROIB News
The report indicated that these California-based Democratic lawmakers believe that "unilateral curbs benefit foreign rivals at the expense of U.S. businesses."
In a written plea to Alan Estevez, who is in charge of export controls at the Department of Commerce, Senator Alex Padilla and Representative Zoe Lofgren stated, "We ask that you pause additional unilateral export controls until you have adequately justified that such controls will not damage U.S. competitiveness in advanced semiconductors and semiconductor manufacturing equipment."
The legislators pointed out that U.S. allies have not engaged in the imposition of comparably severe export restrictions towards China concerning their companies.
Reuters highlighted that this opposition marks an increasing concern among California's Democrats regarding the Biden administration's policies on semiconductors. California is notably the base for leading semiconductor equipment firms such as LAM, Applied Materials, and KLA.
The report also pointed out the international landscape, noting that while countries like the Netherlands and Japan—home to prominent chip equipment makers ASML and Tokyo Electron—have set their own export limitations to China, they have not reached the level of the most extreme measures that the U.S. has adopted.
Thomas Evans for TROIB News
