By David Shepardson

WASHINGTON, (Reuters) -The AFL-CIO is the biggest U.S. labor union and said Monday that it supports a bill in Congress to increase competition with China, improve U.S. semiconductor production, and fix key trade regulations.

A trade association representing 12.5 Million workers wrote to lawmakers urging them to approve the $52 Billion chip bill. This is crucial to address the “current chip shortage” that is continuing to impact automotive production.

The U.S. House will consider the bill in its entirety later in this week.

The union said the bill “will provide critical and overdue enhancements to America’s global competitive capabilities, support workers whose jobs are lost to trade, and protect and expand the tools to fight foreign unfair trade.”

Steny Hoyer, the Majority Leader, stated Friday that the House will vote on the 2,900-page bill known as the “America Competes Act”. This bill provides $45 billion for support to supply chain resilience and the manufacturing of crucial goods.

The administration of President Joe Biden is pressing Congress for funding to subsidize American chip production. This comes as a result of supply-chain problems that have been exacerbated by shortages.

Senate approved the U.S. Last year’s Innovation and Competition Act, which included $52 billion in chips and authorized $190 billion to boost U.S. technology and compete with China.

Some differences exist between the House bill and its Senate counterpart. Leaders of each chamber will attempt to reach a solution if they are approved.

AFL-CIO supports a revised review of supply chain protection “by screening inbound investment and guarding against the offshoring or transference of critical capabilities to hostile countries like China and Russia.”

It added that “from semiconductors and pharmaceutical ingredients, it’ll provide a necessary review mechanism for U.S. productivity and employment.”

House bill revises and reauthorizes Trade Adjustment Assistance programs. This program helps workers who have suffered from the loss of their jobs or wages due to imports. The Generalized System of Preferences is also being reformated, which provides preferential tariffs for imports.