By Patricia Zengerle

WASHINGTON, (Reuters) – A comprehensive bill to increase the U.S.’s competitiveness with China, and to fund vital semiconductor production, passed the Senate in June with bipartisan support. However, it has stalled at the House of Representatives, and will likely not become law until next year.

While President Joe Biden’s Democrats hold both the Senate (and House) and claim that China competition is their top priority, the White House said the House wanted them to create their bill and not accept the U.S. Senate Bill. Innovation and Competition Act (USICA).

Five months later, neither the House nor USICA has been voted upon by its members. A packed legislative agenda means that there’s little time left to complete the task in 2021.

USICA was passed by the Senate 68 to 32. It was rare for a legislative effort to enter industrial policy. The bill authorized $190 Billion to support U.S. technology research and production, along with $54 Billion to expand U.S. manufacturing and research into semiconductors.

Computer chips have become scarce all over the world, which has impacted production of every product, including gaming consoles and vehicles. Chip makers would be able to use any money left to grow their manufacturing.

Many of the issues discussed in USICA (including trade, human rights and international relations) will be addressed at Monday’s virtual summit.

An aide to the House Democratic Leadership declined to provide a time frame for consideration by the House, but said that the Senate and House must still resolve their differences.

Some USICA provisions could end up in legislation that is expected to be passed within weeks. Several members of Congress have submitted pieces to the National Defense Authorization Act as amendments, the NDAA. This is an annual defense policy law that must pass.

Chuck Schumer, the Senate Majority Leader, stated in a Sunday letter that the Senate will likely consider NDAA for consideration this week. He also suggested that “may” the Senate add to the NDAA the Senate-passed USICA text.

He said that this would allow a USICA negotiations with the House to be finished alongside NDAA prior the end of 2012.

In July, the House Foreign Affairs Committee presented its China bill. However, all twenty Republicans on the committee opposed the Eagle Act (Ensuring American Leadership and Engagement Act). There is no information about when the House will vote to approve it.

USICA has a wider scope, while the Eagle Act is more focused on industry and foreign policy. Republicans have vowed to oppose provisions such as those that boost climate cooperation.

As chairman of Intelligence Committee, Senator Mark Warner stressed the importance of competing with China. He also said that passing USICA was crucial due to chip shortages which slow down production in U.S. manufacturing facilities.

In an email statement, he stated that he was urging his colleagues to pass the legislation immediately.

Aides to Congress are concerned that the bill may slip into 2022.

In the deeply divided U.S. Congress, the only truly bipartisan feeling is for China to be treated with utmost severity.

Rep. Michael McCaul (top Republican in the House Foreign Affairs Committee) said that Congress and executive branches must cooperate and address this generational threat. He was asked how crucial legislation needed to deal with Beijing competition.