USA want more own chips
$350 billion to compete with China
2/4/2022 8:06 p.m
The US House of Representatives votes in favor of a bill worth billions that is intended to strengthen the economy against competitor China. A considerable part of the investments should be put into the development of semiconductors and chips in order to be more independent in the future.
The US House of Representatives has voted in favor of a multi-billion dollar law intended to strengthen the US in technology competition with China. The $350 billion bill passed the Chamber of Congress on Friday by a majority of 222 to 210. Among other things, 52 billion dollars are planned for the development and production of semiconductors, a reaction to the global shortage of microchips.
US President Joe Biden has made strengthening the USA in competition with China a central goal of his policy. “More American goods produced here at home lower costs and strengthen supply chains for Americans,” said House Speaker Nancy Pelosi, Democrat. “And it ensures that America, not the People’s Republic of China, writes the rules for the 21st century.”
The vote on the 2,900-page legal text called “America Competes” – loosely translated: America faces the competition – took place just on the day of the official opening of the Olympic Winter Games in Beijing.
Senate passed similar law in 2021
The US Senate voted for a similar bill worth $250 billion last year. The House of Representatives has now passed its own version. The two texts now need to be merged, which could take weeks.
The opposition Republicans accuse Biden’s Democrats of not including harsh measures against China’s trade practices in their bill in the House of Representatives. Rather, measures for climate protection and social policy were anchored in the text that have nothing to do with competition with China. Because the law cannot pass the Senate without the votes of at least 10 Republicans, the Democrats may ultimately be forced to abandon some of their projects.