Business & Economy

US approves $ 250 billion to increase competitiveness against China

Washington, Jun 8 (EFE).- The United States Senate approved Tuesday a bill with an expected expenditure of close to $ 250 billion that aims to increase national competitiveness to face China’s industrial and military power.

The project was approved by 68 votes in favor and 32 against, obtaining the support of senators from both parties.

US President Joe Biden celebrated the approval of the bill in the senate and asked the lower house to do the same.

“While other countries continue to invest in their own research and development, we cannot risk being left behind. The United States must maintain its position as the most innovative and productive nation,” the president said.

The highlight of the project is a $ 50 billion grant for the Commerce Department to subsidize the development and manufacture of semiconductor chips, necessary for both civilian and military devices.

In recent years, the US and global dependence on China for the purchase of semiconductors has grown exponentially.

The American Semiconductor Industry Association said last week that the country’s production share of chips produced worldwide fell from 37 percent in 1990 to 12 percent in 2021.

The project also allocates money to science, research and development and to promote alliances between private companies and universities.

It also provides for new sanctions against China for human rights abuses, a diplomatic boycott of the 2022 Winter Olympics in Beijing and allocates $ 300 million to counteract the political influence of the Chinese Communist Party.

Senate Majority Leader and co-author of the bill, Democrat Chuck Schumer, said the country that achieves the technologies of the future will be “the world economic leader with profound consequences on foreign policy and national security.”

“Either we can hand over global leadership to our adversaries or we can pave the way for another generation of American leadership,” Schumer said. EFE


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