WASHINGTON, Aug 14 (Reuters) - California Democrats are
calling on the Biden administration to freeze reported plans to
impose fresh restrictions on U.S. technology exports to China,
arguing unilateral curbs benefit foreign rivals at the expense
of U.S. businesses.
Washington has imposed a raft of restrictions on exports of
chips and chipmaking equipment to China in recent years, fearing
Beijing could use the technology to bolster its military. The
Netherlands and Japan, home to chipmaking equipment producers
ASML and Tokyo Electron ( TOELF ) respectively, have
also restricted equipment exports to China but stopped short of
matching some of the toughest U.S. measures.
Reuters reported last month that the Commerce Department
plans a new rule that will expand U.S. powers to stop exports of
semiconductor manufacturing equipment from some foreign
countries to Chinese chipmakers, but will exempt Japan and the
Netherlands.
In a letter dated Aug. 13, Senator Alex Padilla and
Representative Zoe Lofgren argued that a further round of
controls "could send longstanding U.S. companies into a death
spiral," because U.S. allies have not imposed similarly
aggressive China export curbs on their own companies.
"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 lawmakers said in
the letter, addressed to Alan Estevez, who oversees export
controls at the Commerce Department.
Commerce said it had been contacted by the congressional
office and would respond through appropriate channels.
The letter is a sign of growing pushback against Biden's
semiconductor policy among Democrats from California, home to
the U.S.'s top chipmaking equipment companies LAM,
Applied Materials ( AMAT ) and KLA.
In April, Democratic California Governor Gavin Newsom and
Padilla urged the Biden administration to reverse its decision
to cancel a subsidy program for building and expanding
semiconductor research and development facilities. That program
had been seen as likely to benefit Applied Materials ( AMAT ).
In their August letter, Padilla and Lofgren stressed that
they were not asking Biden to roll back restrictions on China,
but simply opposed the imposition of rules "with questionable
national-security benefits" when allies do not follow suit.
"We urge you to use all forms of leverage available to the
U.S. government to bring our allies along in aligning their
export controls with ours," they wrote.
In June, Reuters reported that Estevez traveled to Japan
after meeting with the Dutch government to urge the allies to
further restrict China's ability to produce cutting-edge
semiconductors.