The U.S. Innovation and Competition Act recently passed by the Senate takes an aggressive stance against China and bolsters relations with Taiwan.
“Today, the Senate moved our nation one step closer toward revitalizing American semiconductor manufacturing, securing our critical supply chains and bringing home good-quality manufacturing jobs,” U.S. Secretary of Commerce Gina Raimondo said in a news release. "Each day we delay in getting this bill to the President's desk, our foreign competitors gain an edge on the United States. Today's Senate vote is an unmistakable sign that members of both parties understand that making more chips in America is vital to protecting our workers, our businesses and our national security."
The bill has "a focus on China", and if reconciled would boost domestic production of semiconductors, increase foreign disclosures of U.S. land ownership and screen overseas investment in China, a bill summary said. A conference is anticipated to reconcile differences in light of the Senate's amendments to the bill that first passed the House.
But Raimondo said the March 28 Senate vote signals both parties' understanding that manufacturing more chips in the United States is vital to protect workers, businesses and national security, according to the release.
"This effort has the backing of the business community, labor unions, national security experts and leaders in both parties. It's popular, bipartisan and sorely needed," she said in the release. “I look forward to working with the lawmakers who will soon be named to the conference committee."
Two days before the Senate vote, U.S. Trade Representative Katherine Tai testified to the House Ways and Means Committee during the Trade Policy Agenda Hearing that it’s clear “the People's Republic of China (PRC) would only comply with those trade obligations that fit its own interests," according to written testimony. Tai cited PRC's past pattern concerning agreements.
Taiwan News reported the bill strengthens relations with the United States, allowing Taiwanese personnel to wear the Taiwan flag in the U.S., establishing the United States-Taiwan Cultural Exchange Foundation and making provisions to continue regular arms sales to Taiwan.
