CA Dems Warn China Tech Curbs May Trigger ‘Death Spiral’ for US Firms

California Democrats are sounding the alarm over potential new U.S. tech export restrictions targeting China, warning these measures could push major semiconductor companies into a ‘death spiral’ . In a fiery letter to the Biden administration, lawmakers argue that unilateral curbs might inadvertently boost foreign rivals while crushing American innovation .

Senator Alex Padilla and Representative Zoe Lofgren emphasized that allies like the Netherlands and Japan ‘haven’t matched U.S. restrictions’ on chipmaking equipment exports to China. Their appeal highlights growing tensions within the Democratic Party, as California’s tech giants—including Applied Materials and KLA—face rising competition from global players .

The lawmakers urged officials to pause new controls until they can prove they won’t ‘damage U.S. competitiveness’ in advanced semiconductors. This clash underscores a high-stakes balancing act: safeguarding national security without torpedoing an industry that drives Silicon Valley’s economy .

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CA Dems fear China curbs to cause 'death spiral' for U.S. tech firms

cgtn.com