U.S. lawmakers ease planned curbs on Chinese chips amid corporate pushback

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U.S. senators scaled back a proposal that placed new curbs on the use of Chinese-made chips by the U.S. government and its contractors amid pushback from trade groups like the U.S. Chamber of Commerce

The move, first reported by Reuters earlier on Tuesday, is the latest example of industry's efforts to weaken proposals aimed at crimping China's burgeoning tech sector, by pointing out how such measures will raise costs.

"This does not clearly prohibit contractors from themselves using covered semiconductor products," said Robyn Burrows, a lawyer at Blank Rome specializing in federal contracting, when asked to read excerpts of a recent draft of the measure obtained by Reuters and later published Tuesday night as part of a final legislative package.

The powerful U.S. business group also argued in the letter signed by telecommunications and defense industry groups that rooting out such chips from common appliances like toasters or forcing federal contractors like paper suppliers to take on such a monumental task would not further U.S. national security.Lawmakers released a final version of the NDAA Tuesday night.

The Chinese Embassy in Washington said it "firmly" rejects the inclusion of negative language about China in the legislation and said that the Chamber of Commerce letter "shows that arbitrary disruption and damage to the global industrial ... supply chains serves no one's interest."

 

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