In the recent past, the US has imposed extensive restrictions on the export of chips and chip production equipment to China, fearing that Beijing could use this technology to expand its military capabilities. Although the Netherlands and Japan, where major chip production equipment manufacturers are based (ASML and Tokyo Electron respectively), have also imposed export restrictions, they do not match the US's strictest measures.
According to Reuters, the Commerce Department is considering a new rule that would expand the US's power to block the export of semiconductor manufacturing equipment from certain countries to Chinese chipmakers. Japan and the Netherlands would be exempt.
In a letter dated August 13, Senator Alex Padilla and Representative Zoe Lofgren expressed concern that further controls could harm long-established U.S. companies and pointed out that U.S. allies have not imposed similarly stringent export restrictions.
“We ask that you suspend further unilateral export controls until you provide sufficient justification that such controls will not harm U.S. competitiveness in advanced semiconductors and semiconductor manufacturing equipment,” the lawmakers wrote to Alan Estevez, who is in charge of export controls at the Department of Commerce.
This letter reflects growing opposition from California Democrats to the Biden administration's semiconductor policies. California is home to leading chipmakers such as LAM, Applied Materials and KLA.
In April, Governor Gavin Newsom and Senator Padilla also called on the government to reverse its decision to cancel a subsidy program for semiconductor research and development that was supposed to benefit Applied Materials.
In their August letter, Padilla and Lofgren made it clear that they were not seeking to roll back restrictions on China, but expressed concern about new rules with dubious benefits for national security, given that U.S. allies are not taking similar measures.
“We urge you to use all leverage available to the U.S. government to force our allies to align their export controls with ours,” they wrote.
Personally, I don't think the US will immediately remove its grip on Huawei, but the fact that some politicians are calling on the current administration to halt plans for further restrictions is a positive sign. Until that happens, Huawei will continue to dominate the Far Eastern region, whether there are US sanctions or not.