The US is extending a critical concession to Taiwanese and South Korean chipmakers, one that will benefit China.

The US has been working to limit China’s access to advanced semiconductor technology. Because TSMC and other foreign companies rely on tech and equipment from the US, the US government can impose various restrictions. The US has used those export control restrictions to keep advanced tech from China.

According to The Wall Street Journal, the Biden administration is planning to extend existing exemptions to those rules, which will allow TSMC, Samsung, and others to expand their operations in China without fear of reprisal. The exemptions were originally set to expire in October, but WSJ says they will now be extended for the foreseeable future.

Critics say the decision significantly undermines existing US policy.

“You can’t control technology when two huge firms get to do whatever they want,” said Derek Scissors, a senior fellow at the American Enterprise Institute and a former commissioner on the U.S.-China Economic and Security Review Commission.

“You look very weak,” Scissors added.

The decision is largely a pragmatic one that recognizes the challenges involved in further isolating China. As WSJ points out, chipmakers in both Taiwan and South Korea have pushed back against US restrictions, in some cases even considering opting out of the available CHIPS Act funding to avoid such restrictions.

Pragmatic or not, the decision will greatly benefit China, helping it keep pace in the semiconductor market.