US Senate Democrats to propose comprehensive China competition bill

The measure will focus on limiting hi-tech transfers and the flow of investments to China, among other military, diplomatic and economic goals

Majority Leader Chuck Schumer says he anticipates it being a bipartisan legislative effort that will be introduced ‘within the next several months’

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Senate Majority Leader Chuck Schumer and his committee chairs talk about their proposed China competitiveness legislation on Wednesday at the US Capitol. Photo: Getty Images via AFP

Published: 4:50am, 4 May 2023Updated: 5:18am, 4 May 2023

US Senate Majority Leader Chuck Schumer, along with the Democratic leaders of several Senate committees, on Wednesday announced plans for a legislative package he described as “one large Chinese government competition bill”.

It will feature five areas, he said: limiting advanced technology transfer to the Chinese government; restricting investment flows to Beijing; strengthening domestic industries; improving coordination with security partners and allies; and strengthening alignment between economic and trading partners.

Schumer, who represents New York, said that he hoped to get the bill together “within the next several months” and that he wanted it to be bipartisan, noting that there was already “great interest” from Republicans.

He said he has asked fellow Democratic senators “to reach out to their ranking members and other Republicans and begin working to deliver packages of bipartisan legislation, which we will combine into one large Chinese government competition bill”.

US Senate Majority Leader Chuck Schumer holds up notes outlining the goals of the China competitiveness legislation he announced on Wednesday. Photo: Reuters

Republican support is necessary for the effort to progress, as the party holds the majority in the House of Representatives.

The measure will be aimed at expanding last year’s landmark Chips and Science Act, which authorised more than USD$170 billion over five years to bolster science research and US$52.7 billion in subsidies for semiconductor manufacturing and research. But “we have to move further” beyond it and the Inflation Reduction Act, Schumer said.