Top Senate Democrats Urge Reinstatement of Paused Export Rule
Top Senate Democrats, led by Minority Leader Chuck Schumer, criticized the Trump administration on Wednesday for pausing a regulation designed to block thousands of Chinese companies from accessing sensitive U.S. technology. They called the one-year delay a "giveaway of key national security tools" and warned it undermines U.S. efforts to curb technology diversion to state-affiliated Chinese entities.
The rule, unveiled on September 29, sought to prevent sanctioned Chinese firms from using networks of subsidiaries to obtain American equipment they would otherwise be barred from receiving. Under the rule, companies at least 50% owned by previously sanctioned entities would have been restricted from receiving U.S. tech exports — potentially extending controls to roughly 20,000 additional Chinese firms, according to WireScreen.
President Donald Trump agreed last month to postpone the rule for one year as part of a deal with Chinese President Xi Jinping. In return, Beijing pledged to suspend, for the same period, certain curbs on rare earth mineral exports — critical inputs for advanced electronics and largely controlled by China.
'The suspension of these controls undermines U.S. national security and will make it far more difficult to stem the illicit diversion of American-made semiconductors and other advanced technology to Chinese state-affiliated entities,' the senators wrote.
In a letter first reported by Reuters, senators including Ron Wyden urged the president to reinstate the controls, saying the delay reopens a loophole and gives affiliates of blacklisted firms 'a year-long opportunity ... to restructure in order to evade the rule.' They argued that using export controls as a bargaining chip risks long-term national security for short-term trade concessions.
- Who: Senate Democrats led by Chuck Schumer, joined by Ron Wyden, Elizabeth Warren, Chris Van Hollen, Jeff Merkley, Ben Ray Lujan, Andy Kim and Catherine Cortez Masto.
- What: A one-year suspension of an export rule that would expand restrictions to roughly 20,000 Chinese firms.
- Why it matters: The pause could allow sanctioned networks to restructure and evade U.S. controls, increasing the risk that advanced U.S. technologies reach state-linked Chinese entities.
The White House and the Commerce Department, which oversees export controls, did not immediately respond to requests for comment. The letter represents the latest bipartisan pushback from China hawks and other lawmakers concerned about safeguarding advanced computing and semiconductor technology.
Reporting by Alexandra Alper; Editing by Leslie Adler.
