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I am a solicitor and will help you today.
Generally, parties to a contract have the freedom to choose which jurisdiction's laws would apply to the contract. You may both agree on English law or Californian law as the governing law of the contract.
However, it would be to your advantage to insist on English law as you are in the UK and familiar with English law, it would be very costly for you to submit to Californian law were a dispute to arise.
May I help further?
It is a commercial negotiation point, so you should simply write back and insist that the governing law be retained as English law as your business is based in the UK and you will be providing services from the UK, so English law would have the closest connection and application to your service.
All the best
You are welcome.