California Democrats Fear US Tech Firm Death Spiral With More China Curbs
Democrats Urge Biden Administration to Freeze Plans for New Restrictions
Reps. Schiff, Khanna, and Lieu Express Concerns Over Potential Impact on Jobs and Innovation
WASHINGTON - California Democrats in Congress are expressing alarm over the Biden administration's reported plans to impose additional restrictions on US technology companies' dealings with China, warning of a potential "death spiral" for the tech industry.
In a letter to President Biden, Reps. Adam Schiff, Ro Khanna, and Ted Lieu urged the administration to freeze the reported plans, saying they could have "devastating consequences" for California's economy and for US innovation.
- The lawmakers cited a report in the Financial Times that the administration was considering new export controls and investment restrictions aimed at curbing China's access to advanced US technology.
- They warned that such measures could lead to a "vicious cycle" in which US tech firms lose market share to Chinese rivals, leading to job losses and a decline in innovation.
"California is home to the world's leading technology companies, and these companies are essential to our state's economy," the lawmakers wrote. "We urge you to reconsider the reported plans to impose additional restrictions on these companies, as they could have devastating consequences for California's economy and for US innovation."
The Biden administration has not yet publicly confirmed the reported plans, but officials have said that they are considering a range of options to address concerns about China's growing technological capabilities.
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