Business

The Senate is poised to pass a huge industrial policy bill to counter China

“China’s proceedings break the distinction between commerce and military,” said Senator Chris Coons of the Democratic Party of Delaware, a co-founder of several legislative bills. In China, “almost all large corporations are part of state power and are inextricably linked to the central government, which has funded its dramatic growth.”

The most striking thing about this law is that the project funded by the bill is closely similar to the project in China’s Made in China 2025 program. Inject huge government spending into technology that the country is trying to become independent of external suppliersThe Chinese government announced an initiative six years ago.

As a result, many experts say the bill could accelerate the decoupling of the world’s largest and second-largest economies. Beijing fears that state-of-the-art chips and state-of-the-art software will depend on foreign sources for years. Washington is worried about the mirror image that China’s dominance in 5G technology gives Beijing the ability to block US telecommunications.

The transition to limit the entanglement of the two economies can also be accelerated by the following steps: President Biden He on thursday Issued an executive order It prohibits Americans from investing in Chinese companies that support Chinese troops or manufacture surveillance technology used for ethnic or religious crackdowns.

Some Republicans are reluctant to pay for the bill — a $ 52 billion subsidy program for national semiconductor companies and an additional $ 195 billion for scientific research and development — most Republicans Is still signing. And it raised concerns that legislation, a classic Washington mashup of other bills that grew to over 2,400 pages, could take longer to monetize than the actual strategy.

Schumer denied the claim in an interview.

“When the government invests in pure form of research, it will create millions of jobs in the future,” he said, citing investments in the National Institutes of Health and the National Science Foundation.

His Republican Republican Senator Todd Young of Indiana said that the legitimacy of his party’s ideology is like Huawei, the telecommunications giant that China connects countries around the world. It claims to have been wiped out by the reality of how to fund the “national champion”: a 5G network that can bring traffic back to Beijing.

The Senate is poised to pass a huge industrial policy bill to counter China

Source link The Senate is poised to pass a huge industrial policy bill to counter China

Back to top button