WASHINGTON, D.C: After pushback from trade groups, such as the US Chamber of Commerce, US senators have eased proposed new curbs on the use of Chinese-made chips by the US government and its contractors.

Industry groups have exerted significant efforts to weaken proposals aimed at curbing China'a tech sector, claiming such measures will increase costs.

In September, leading Senate Democrat Chuck Schumer and prominent Republican John Cornyn announced a measure requiring federal agencies and their contractors to stop using semiconductors manufactured at China's SMIC, as well as chips made by YMTC and CXMT.

The final version now allows contractors to use the Chinese chips.

"This does not clearly prohibit contractors from themselves using covered semiconductor products," said Robyn Burrows, a lawyer specializing in federal contracting, as quoted by Reuters.

Chips made by SMIC are used by companies around the world and can be found in various products, such as as cell phones and cars. They are often difficult to identify.

Added as an amendment to the National Defense Authorization Act (NDAA), the measure was criticized by the Chamber of Commerce and other trade groups.

In a letter, first reported by Politico and signed by telecommunications and defense industry groups, business officials argued that banning the Chinese chips from common appliances, such as toasters, would not benefit US national security.

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