The House (congress) passes bill to counter China’s influence with manufacturing and research investment.

The House of Representatives voted Friday to make sweeping investments in American manufacturing and scientific research as well as changes to trade policy in an effort to make the US more competitive on the global stage and counter China's growing economic influence.

Congressional Democrats are searching for a win as key elements of President Joe Biden's domestic agenda remain stalled, most prominently sweeping legislation to expand the social safety net known as the Build Back Better Act.

Passage of the China competition bill will give the party an opportunity to tout a legislative victory and demonstrate responsiveness to major economic concerns, like supply chain disruptions, in the spotlight amid the pandemic. And it gives Democrats a chance to argue their assertiveness against a major superpower whose economic influence is on the rise at a key moment with China hosting the Olympic Games in Beijing.

INTC is a major beneficiary of this legislation as they will manufacture chips on US soil and supply the civilian and defense industries with domestic semiconductors.

It would provide $52 billion over five years to boost semiconductor research, design and manufacturing in the United States, according to a summary of the bill provided by House Democrats.

It would also provide $45 billion over six years in grants and loans to improve the nation's supply chains and to boost American manufacturing of goods deemed critical for national security and the US economy — like products for public health, communications technology and food — according to the summary.


Leave a Reply

Your email address will not be published. Required fields are marked *