The bill will be sponsored by Representative Ro Khanna of California and aims to promote American innovation in the technology sector. It would also require China to change its policies on artificial intelligence, autonomous vehicles, robotics, and cybersecurity.
The “china spending bill” is a Democratic push to revive the $250 billion Tech Investment Bill that would counter China’s growing influence in the tech sector.
WASHINGTON— Despite legislators’ growing worries about global competitiveness, a $250 billion spending plan to expand US investment in high-tech research and production has stalled in the House.
Last year, the Senate approved its version, entitled the United States Innovation and Competition Act, with bipartisan support, stating that the United States has to make significant expenditures in science and technology to face the challenge presented by China and other global competitors.
About $52 billion is included in the Senate measure to encourage additional semiconductor manufacture in the United States. According to a corporate official, this clause might boost Intel Corp.’s intentions to invest in two new semiconductor plants in Ohio, which were announced on Friday.
The bill has been mired down in the House, where many Democrats want it to address bigger social concerns such as economic injustice and climate change, perhaps jeopardizing Republican support.
Democratic leaders, angry that their larger spending proposals have stalled in Congress, are hoping to swiftly resolve divisions over the technology funding bill and transform it into a possible bipartisan victory.
“This is a really significant piece of legislation. This week, House Majority Leader Steny Hoyer (D-Md.) said, “We want to see this measure approved.” “We’re going to put in a lot of effort to obtain this.”
The United States intends to challenge China’s global power by providing infrastructure, vaccinations, and renewable energy. The proposal, called Build Back Better World, attempts to compete with China’s Belt and Road Initiative, according to Stu Woo of the Wall Street Journal. Daniel Orton contributed to this composite photo.
President Biden said the company’s statement emphasized the urgent need for Congress to adopt the competitiveness package during a White House gathering with Intel leaders on Friday.
He remarked, “I want other towns and states to be allowed to make announcements like the one made here today.” “Let’s get another historic bipartisan piece of legislation passed.” Let’s do it for the benefit of our national security and economic competitiveness.”
Officials in the Biden administration, including Commerce Secretary Gina Raimondo, are supporting the bill, claiming that it is necessary to keep the United States competitive and that it might also assist to control domestic inflation.
However, the China competitiveness package is revealing some of the same ideological differences that have hindered previous Democratic spending measures in this difficult election year.
Democrats, supported by several powerful committee chairmen, want the package to include financing for social and economic injustice, vaccine diplomacy, and climate change, among other issues. They argue that the United States cannot compete internationally without addressing domestic issues.
The heart of the House package was written by Rep. Eddie Bernice Johnson (D-Texas), chairperson of the House Science, Space, and Technology Committee. “We have two aims in mind,” she added, “advancing US competitiveness and technology leadership, and harnessing our scientific investments and variety of STEM talent to better solve social concerns.”
The Senate’s version, she added, “fails to address the demands of the scientific community and our country.”
Some Republicans disagree, arguing that the law should be solely focused on boosting American technology, especially supporting domestic semiconductor production, and not muddied by “duplicative government expenditure,” as Rep. Cathy McMorris Rodgers (R., Wash.) puts it.
Rep. Jim Banks (R., Ind. ), chairman of the Republican Study Committee, said the Senate bill, backed by Senate Majority Leader Chuck Schumer (D., N.Y.), falls short in reaction to Chinese intellectual property theft and other wrongdoing.
“Conservatives in the House have long complained that Schumer’s China bill lacked teeth and emphasis,” he added. “Confronting China’s negative action in the United States must be our top priority.” This law completely misses the goal.”
Commerce Secretary Raimondo said in an interview that she is “cranking up the urgency” in her attempts to encourage legislators to concentrate on enacting the bill.
“I contact members of Congress almost every day, particularly in the House but also in the Senate, repeating how important this is and how it connects to inflation,” Ms. Raimondo said.
Mr. Schumer, who has long been worried about the United States’ competitiveness with China, spearheaded the Senate’s push for the bill.
Stefan Jeremiah/Zuma Press/Zuma Press/Zuma Press/Zuma Press/Zuma Press/
According to a Congressional Budget Office study, the Senate proposal would allow roughly $190 billion in expenditures to boost US advanced technologies and invest about $52 billion to encourage increased semiconductor manufacture in the US.
The company’s intentions to increase chip manufacturing in Ohio, according to Intel spokesperson William Moss, would “in principle” be qualified for the semiconductor financing. However, this is contingent on Congress ultimately accepting funds for the previously passed CHIPS Act, as well as the funding legislation’s specifics.
Mr. Moss said, “We hope that Congress will complete the job and fully finance the CHIPS Act to encourage domestic chip manufacture and assist re-establish American technological leadership.”
Ms. Raimondo said such expenditure will assist in the alleviation of computer chip shortages, which have resulted in restricted supplies—and higher prices—for automobiles, appliances, electronic gadgets, and other consumer goods.
Ms. Raimondo, a former Rhode Island governor and venture entrepreneur, said, “If Congress wants to do anything about inflation, enact this legislation.”
The Commerce Department will soon release the findings of an in-depth study it conducted of semiconductor suppliers and large corporations, highlighting the urgency of shortages, to further compel legislative action, she added.
The delayed proposal highlights the political difficulty that leaders confront in formulating legislation that can appease House Democrats, particularly progressives, while still retaining Senate Republicans.
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“What everyone is trying to figure out is how to get enough [House] committee input while maintaining Republican support in the Senate,” Rep. Ro Khanna said (D., Calif.).
Speaker of the House Nancy Pelosi (D-California), who favors the bill, has been working behind the scenes to hasten its passage.
The House is presently putting together its package in preparation for final discussions with the Senate, according to a Democratic leadership aide. According to the source, the House measure would likely place a greater emphasis on supply-chain issues than the Senate version.
Last June, the Senate approved its version of the bill by a vote of 68-32, with strong Republican support. Sen. Roger Wicker (R-Mississippi) said that it was necessary to put the United States “a step ahead of China.”
Mr. Schumer, who has long been worried about the United States’ competitiveness in comparison to China, spearheaded the Senate effort. He has lately advocated for government funding for prospective semiconductor laboratories in New York’s Albany area, which might be supported by a portion of the package aimed at promoting domestic semiconductor manufacture.
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The “china competition bill” is a bill that Democrats are pushing to revive. The bill would invest $250 billion in the United States tech industry in order to compete with China.
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