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U.S. House set to pass sweeping vote on China competition bill -Breaking

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© Reuters. FILE PHOTO – Flags of the United States and China fly outside a building in Shanghai on November 16, 2021. REUTERS/Aly Song

By Patricia Zengerle

WASHINGTON, (Reuters) – The U.S. House of Representatives is expected to approve a bill worth multibillion dollars that aims at increasing American competition with China and boosting U.S. manufacturing of semiconductors despite Republican resistance.

The Democratic-majority House should support the “Competes Act” mostly along party lines. The Senate would negotiate a compromise on the bill. It would need to be passed by both chambers before the White House could sign it.

House Bill 522 billion to support semiconductor research and manufacturing. Supply chain bottlenecks are a major reason for shortages in key components of computers and automobiles. The bill also includes $45 billion to address supply chain issues.

A bill that would authorize an additional $8 billion to be contributed by the United States to the Green Climate Fund (established under the Paris Agreement for combating climate change) to assist developing countries.

Nancy Pelosi, House Speaker, stated last week that the 2,900 page bill would “supercharge” chip investment and boost U.S. research and manufacturing. She also said it would help America’s leadership in a growing China.

House Republicans claim that Democrats failed to include them in the legislation’s drafting. They criticized climate provisions harshly and suggested that they could be used for Beijing’s benefit.

House Democrats claim that Republicans were hostile to them during the writing of legislation.

“It is incredibly disappointing”, said Representative Suzan DeBene of the New Democrat Coalition. This grouping includes moderate Democrats. Democrats argued the bill would increase employment across the nation.

Democrats are pleased to note that their bill contains all or part more than 60 smaller bills, which were co-sponsored by Republicans.

Senate adopted its own bill, the U.S. Innovation and Competition Act was passed by the Senate 68 to 32 in June. 18 Republicans voted yes, along with every Senate Democrat. This legislation provides $52 million to boost domestic semiconductor production. It also authorizes $190,000,000 for U.S. research and technology to rival China.

House Bill – $45 Billion to Strengthen Supply Chains and Manufacturing of Critical Goods for Health, Communications and Other Sectors.

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