Dem senators take umbrage with new China tech trade

A group of Democratic senators is calling on President Donald Trump to reverse course on exempting China from U.S. export controls.

In a Nov. 12 letter, Sen. Ron Wyden, D-Ore., Senate Minority Leader Chuck Schumer, D-N.Y., and eight of their colleagues cited national security concerns associated with opening up trade with China. In particular, they highlighted the illicit diffusion of U.S.-made semiconductor chips used to power AI-focused data centers, along with other sensitive technologies. 

“Robust and stable export controls are essential to protect American national security and global technological leadership,” the letter said. “We urge you to reconsider this misguided strategy and ensure that our nation’s export controls are no longer used as a bargaining chip.”

At the heart of the debate over whether to enhance export controls to China is a new rule implemented by the Bureau of Industry and Security in September 2025. 

Known as the “affiliates rule,” the provision is aimed at restricting sensitive U.S. goods from being exported to shell or subsidiary companies associated with export-controlled countries. It does so by blocking transactions with entities that have at least a 50% ownership stake from an individual or country subject to export controls. 

The missive’s signatories accused Trump of eliminating this rule’s application to China and Chinese-linked entities as a negotiation tactic.

“The suspension of this rule for at least one year undermines BIS authority at a time when export controls on advanced semiconductors are paramount to protect American technological leadership,” the lawmakers wrote. “Not only does the suspension of this rule reopen the loophole immediately, it also provides a year-long opportunity for affiliates of blacklisted foreign firms to restructure in order to evade the rule if and when it is reinstated.”

The letter comes after Trump’s recent trip to Asia resulted in a renewed trade deal with Chinese President Xi Jinping. 

One of the trade provisions the administration struck with China is Beijing’s suspension of export controls on rare earth minerals. Other negotiated agreements include China ending the flow of fentanyl to the U.S., suspending retaliatory tariffs on U.S. agricultural products like soybeans, wheat and dairy, and terminating investigations into U.S. companies participating in the semiconductor supply chain.

The new China-U.S. trade framework is set to last until Dec. 31, 2026.

Lawmakers who signed the letter blasted these updates as “quick handshake ‘deals’” that reverse previous trade mishaps perpetrated by the administration. 

In response to the criticism, the administration said the export control framework negotiated by Trump implements robust security surrounding U.S. technology exports. 

“The Trump administration has implemented a rigorous export control regime to safeguard our economic and national security,” White House spokesperson Kush Desai told Nextgov/FCW. “Democrats who were asleep at the wheel when Joe Biden was lackadaisically selling out cutting-edge American technology to foreign rivals are in no position to now criticize the Trump administration.”