Senate set to pass massive industrial policy bill to counter China
“The trade and military distinction is eroded in the case of China,” said Senator Chris Coons, a Democrat from Delaware who has co-sponsored several bills that have been incorporated into legislation. In China, “almost all the big companies are part of state power and closely linked to the central government, which largely funded their spectacular rise.”
What is most striking about the legislation is the extent to which the projects funded by the bill are closely linked to those of China’s “Made in China 2025” program, which funnels huge government spending into technology. where the country seeks to be independent from outside suppliers. The Chinese government announced its initiative six years ago.
The result, according to many experts, is that the bill could accelerate the decoupling of the world’s largest and second-largest economies, even as each worries about its dependence on the other. Beijing fears that it will depend for years on foreign sources for the most advanced chips and advanced software; Washington is concerned that China’s dominance in 5G technology could give Beijing the chance to cut US telecommunications.
Change to limit the intertwining of the two economies may also be accelerated by measures like the one President Biden took on Thursday, when he issued an executive order prohibiting Americans from investing in Chinese companies that support the military. Chinese, or who manufacture surveillance technology used in ethnic or religious repression.
While some Republicans have backed down from the costs of the bill – a $ 52 billion subsidy program for semiconductor companies nationwide and an additional $ 195 billion in scientific research and development – most are still in the works. designate. And that raised concerns that the legislation, a classic Washington mix of other bills that reached over 2,400 pages, could be longer in cash than a real strategy.
Mr. Schumer rejected this claim during the interview.
“When the government invests in pure forms of research, it ultimately creates millions of jobs,” he said, citing investments in the National Institutes of Health and the National Science Foundation.
His Republican co-sponsor, Senator Todd Young of Indiana, argues his party’s ideological orthodoxies have been swept aside by the realities of how China finances its “national champions” like Huawei, the telecommunications giant that connects nations around the world with 5G networks capable of redirecting traffic to Beijing.