Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

U.S. Senate eyes tightened restrictions on Chinese semiconductors

Published 11/28/2022, 04:52 PM
Updated 11/28/2022, 07:21 PM
© Reuters. FILE PHOTO: U.S. Senate Majority Whip John Cornyn and Senate Minority Leader Chuck Schumer talk while Senator Orrin Hatch (L-Rear) looks on as they attend ceremonies for the late former U.S. President George H.W. Bush inside the U.S. Capitol rotunda in Wa

By Patricia Zengerle

WASHINGTON (Reuters) - The Democratic leader of the U.S. Senate urged lawmakers on Monday to back his proposal to bar the U.S. government from doing business with companies that use semiconductors made by producers the Pentagon considers Chinese military contractors.

"If American business wants the federal government to buy their products or services, they shouldn't be using the kind of Chinese-made chips that, because of Chinese government involvement, put our national security at risk," Senator Chuck Schumer said in remarks opening the Senate after its Thanksgiving holiday recess. "We need our government and our economy to rely on chips made right here in America."

Schumer and Republican Senator John Cornyn introduced their proposal as an amendment to the National Defense Authorization Act, or NDAA, an annual bill setting policy for the Department of Defense expected to pass the Senate and House of Representatives in December.

As one of the only major pieces of legislation Congress passes every year, the NDAA is closely watched by a broad swath of industry and other interests because it determines everything from purchases of ships and aircraft to pay increases for the troops and how to address geopolitical threats.

Lawmakers also use the bill as a vehicle for a wide range of policy measures. The proposal from Schumer and Cornyn would broaden an existing ban on government use of Chinese chips.

The 2023 NDAA authorizes more than $800 billion in spending.

"We need to stay tough on the Chinese government and its actions," Schumer said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

HELLO TAIWAN CAPITAL OF CHINA
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.