China bill with US$54 billion in chip funding faces uphill battle in Congress
- A rare legislative foray into industrial policy, the bill included US$190 billion to strengthen US tech and an additional US$54 billion for chip production
- Many issues addressed in the bill, including trade and human rights, are expected to feature at Monday’s virtual summit between Biden and Chinese leader Xi Jinping
Sweeping legislation to boost US competitiveness with China and fund much-needed semiconductor production passed the Senate with bipartisan support in June, but has stalled in the House of Representatives and now faces an uphill climb to become law before next year, if ever.
Five months later, the House has not voted on its own bill nor taken up USICA. And with a packed legislative agenda, there is scant time to do so in 2021.
The Senate passed USICA by 68-32. The measure was a rare legislative foray into industrial policy, authorising US$190 billion to strengthen US technology and research, and an additional US$54 billion to increase US production and research into semiconductors and telecommunications equipment.
There is a worldwide shortage of computer chips, crimping production of everything from gaming consoles to vehicles, and money in the bill would have gone to chip makers to expand manufacturing.
Many issues addressed in USICA, including trade and human rights, are expected to feature at Monday’s virtual summit between Biden and Chinese leader Xi Jinping.