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US passes bill to boost tech industry, rival China economically

US passes bill to boost tech industry, rival China economically

Bernie Sanders was the only member of Democratic caucus to vote against the bill

biden_jinpingUS President Joe Biden, China President Xi Jinping

In a bill largely viewed as one meant to fend off competition from China, the US Senate overwhelmingly approved a boost to US semiconductor production and the development of artificial intelligence and other technology.

The bill passed 68-32, with independent senator Bernie Sanders of Vermont being the only member of the Democratic caucus to vote against the bill, CNN reported.

The centerpiece of the bill is a $50 billion emergency allotment to the Commerce Department to stand up semiconductor development and manufacturing through research and incentive programs previously authorised by Congress. The bill’s overall cost would increase spending by about $250 billion with most of the spending occurring in the first five years.

One of the bill’s provisions would create a new directorate focused on artificial intelligence and quantum science with the National Science Foundation. The bill would authorize up to $29 billion over five years for the new branch within the foundation with an additional $52 billion for its programs.

Supporters described it as the biggest investment in scientific research that the country has seen in decades. It comes as the nation’s share of semiconductor manufacturing globally has steadily eroded from 37 per cent in 1990 to about 12 per cent now, and as a chip shortage has exposed vulnerabilities in the US supply chain.

The support for the bill demonstrates how confronting China economically is a mission that unites both parties in Congress. That’s a rarity in an era of division as pressure grows on Democrats to change Senate rules to push past obstruction and gridlock.

China the biggest challenge, says US

China is the single nation that militarily, economically, diplomatically and politically has the ability to try to disturb the rules-based order that the United States, its friends and allies strongly defend, US Secretary of State Tony Blinken said.

He also said that China is both the most consequential and most complicated relationship the US has. “It [China] is the single nation state that militarily, economically, diplomatically, politically has the ability to try to up the rules-based order that we strongly defend because it’s advanced our own security and prosperity for so many years,”Blinken told lawmakers during a Congressional hearing on Tuesday.

Testifying before the Senate Appropriations Committee during the hearing on the 2022 Budget Request for the State Department, Blinken said the US-China relationship has increasing adversarial aspects to it. It certainly has competitive ones. And it still has some cooperative ones as well. But the common denominator is to approach each of those aspects of the relationship from a position of strength. I think that strength starts with a few things, he said.

Blinken said that it starts with alliances and partnerships. This is a unique strategic asset for us, something that China does not enjoy. That’s why we’re working to revitalise those alliances and partnerships. It includes our engagement in international organisations and international life because when we pull back, China fills in and starts to shape the rules and set the norms, he said.

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