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U.S. Senate passes sweeping bill to address China tech threat

Published 06/08/2021, 08:19 AM
Updated 06/09/2021, 05:21 AM
© Reuters. FILE PHOTO: The U.S. Capitol building is seen behind security fencing that has been up around the building since shortly after the January 6, 2021 siege on Capitol Hill in Washington, May 28, 2021.  REUTERS/Evelyn Hockstein

By David Shepardson

WASHINGTON (Reuters) -The U.S. Senate voted 68-32 on Tuesday to approve a sweeping package of legislation intended to boost the country's ability to compete with Chinese technology.

An indignant China responded to the vote by saying it objected to being cast as an "imaginary" U.S. enemy.

The desire for a hard line in dealings with China is one of the few bipartisan sentiments in the deeply divided U.S. Congress, which is narrowly controlled by President Joe Biden's fellow Democrats.

The measure authorizes about $190 billion for provisions to strengthen U.S. technology and research - and would separately approve spending $54 billion to increase U.S. production and research into semiconductors and telecommunications equipment, including $2 billion dedicated to chips used by automakers that have seen massive shortages and made significant production cuts.

China's parliament expressed "strong indignation and resolute opposition" to the bill. It said in a statement that the U.S. bill showed "paranoid delusion of wanting to be the only winner" and had distorted the original spirit of innovation and competition.

"We firmly object to the United States seeing China as an imaginary enemy," Chinese foreign ministry spokesman Wang Wenbin told reporters in Beijing.

The bill must pass the House of Representatives to be sent to the White House for Biden to sign into law. It is not clear what legislation in the House will look like or when it might take it up.

The bill has a number of other China-related provisions including prohibiting the social media app TikTok from being downloaded on government devices, and would block the purchase of drones manufactured and sold by companies backed by the Chinese government. It would also allow diplomats and Taiwanese military to display their flag and wear their uniforms while in the United States on official businesses.

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It would also create broad new mandatory sanctions on Chinese entities engaged in U.S. cyberattacks or theft of U.S. intellectual property from U.S. firms, and provides for a review of export controls on items that could be used to support human rights abuses.

Senate Majority Leader Chuck Schumer, a co-sponsor of the measure, warned of the dire consequences of not funding research to keep up with China.

"If we do nothing, our days as the dominant superpower may be ending. We don’t mean to let those days end on our watch. We don’t mean to see America become a middling nation in this century," Schumer said.

Biden praised the bill: "We are in a competition to win the 21st century, and the starting gun has gone off ... We cannot risk falling behind."

U.S. Commerce Secretary Gina Raimondo has said the funding could result in seven to 10 new U.S. semiconductor plants.

Many U.S. companies praised the bill. General Motors Co (NYSE:GM) said the legislation "represents an important step to address the semiconductor shortage that continues to impact U.S. automotive manufacturing."

Some critics have likened the Senate funding effort to China's high-tech industrial development push, dubbed "Made in China 2025," which long irked the United States.

The bill also seeks to counter Beijing’s growing global influence through diplomacy, by working with allies and increasing U.S. involvement in international organizations after Republican former President Donald Trump's "America First" agenda.

Senator Maria Cantwell noted the bill would authorize NASA spending and its Artemis mission to the Moon.

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"As China has made it clear, they're going to Mars, we are going back to the Moon to ready ourselves to go to Mars," Cantwell said.

Latest comments

Paranoid.
All of these are for headlines and propaganda... that's how our system is setup to be, mostly playing dirty politics... if you ask 10 senators to point out on a map where China is, I will bet anyone here probably 1 or 2 would only know that answer...
Beijing biden and the beijing congress won't sign this, republicans are on board with this as well since they did absolutely nothing back in 2016 when they had a majority in all three branches. . dog and pony show.
Good point Sid. How much will be skimmed off off of all that? And, if the recipients of said funds invent something that makes them trillions, do the taxpayers get their money back, or do those lucky billionaires get that too?
Make them pay $10 Trillion for spreading China virus
Make trump pay the $10 trillion for starting and spreading the stolen election and voter fraud conspiracies and the attack on the capitol by his zealous followers.
How much does the USA need to pay for 9/11 attacks on afganistan ans iraq?
 I think you are looking for Covfefe. You just need more Covfefe!!!
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