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Sweeping bill to address China tech threat likely to take weeks in U.S. House

Published 06/15/2021, 06:17 PM
Updated 06/15/2021, 06:30 PM
© Reuters. FILE PHOTO: Chinese and U.S. flags flutter outside a company building in Shanghai, China April 14, 2021. REUTERS/Aly Song/File Photo

By Patricia Zengerle and David Shepardson

WASHINGTON (Reuters) - A highly touted bill to boost the United States' ability to compete with Chinese technology could take weeks to get through Congress, as U.S. House of Representatives lawmakers planned to write their own legislation, which must then be combined with what was approved by the Senate this month.

House Democratic Majority Leader Steny Hoyer said House committees were working on their legislation, which he hoped would pass with support from Republicans as well as Democrats.

"I think the House committee - or committees - have views that they want to express," Hoyer told reporters. "... I don't think there's anything nefarious about it. I hope that we will move forward with a bill."

Once the House passes its bill, negotiators from both chambers would work out differences and agree on a final version in conference. The House and Senate would both have to pass that final measure before it could be sent to the White House for President Joe Biden to sign into law.

"Hopefully we can work that out so that the best of both bills will be available to us, so that we can ensure our competitive status vis-a-vis China in particular and also dealing with some of the nefarious things that China does to pursue unfair trade tactics with our country, including intellectual property theft," Hoyer said.

House Science Committee Chairwoman Eddie Bernice Johnson said on Tuesday she favored an approach based on the current capabilities of the National Science Foundation and Department of Energy, in contrast to the approach outlined in the Senate bill.

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"If we are to remain the world leader in science and technology, we need to act now. But we shouldn't act rashly," Johnson said as the committee considered two bills that would be part of the House bill.

"Instead of trying to copy the efforts of our emerging competitors, we should be doubling down on the proven innovation engines we have at the National Science Foundation and the Department of Energy," she said.

The U.S. Senate on June 8 backed by a strong bipartisan 68-32 majority the "U.S. Innovation and Competition Act," or USICA, which authorizes about $190 billion for provisions to strengthen U.S. technology and research, and approved $54 billion to increase U.S. production and research into semiconductors and telecommunications equipment.

It was not immediately clear how the House bill might differ from the Senate's approach on semiconductors. A global shortage of chips that has slowed production in the automobile and tech industries has added fuel to calls for the United States to rely less on China.

China's parliament expressed "strong indignation and resolute opposition" to the Senate bill, which was praised in Washington as a rare example of bipartisan action by the deeply divided U.S. Congress.

Biden's fellow Democrats control both the House and Senate, but only by narrow margins. However, the desire for a hard line in dealings with Beijing is a rare bipartisan sentiment in the deeply divided Congress.

Latest comments

China gets bills through in 5 minutes. US lawmakers.....
any debate about freedom in China is settled with the barrel of a gun and rhe slaughter of Chinese citizens. you want an example David9 the 3000 dead peaceful protesters, at Tieniman square in Beijing. the band of dishonorable killers known as the people's liberation army with no remorse guned them down for their autocratic overlords.
Vald with your support of brutal autocratic dictatorships. i"ll bet you're related to Vald the impaler. he was a despot, someone you would have surely gotten behind and supported. scholars also think he was the model for the character Dracula.
Proof? One only needs to look at the relative recent history of China. The fact you're even asking this question leads one to conclude, to respond to what is an axiomatic statement of fact is a waste of breath. Two words: China Shill. China is the only nation that has ever been able to implement such long term plans and carry them out. There is only one party, the Communist party. Though I would use the word communist very lightly at risk not to offend Lennon who clearly rolled in his grave. China an autocratic nation for the benefit of the CCP criminal plutocracy.
These politicians are a joke. They will not get anything done... look at the sky high debt reaching $30T... when that debt explode, it is over...
Star bio...the one big thing you need to know, you can't trust Chinese statistics. whether it's Chinese Corporations or the Chinese government they will lie if it suits them politically or economically. the SEC is watching Chinese companies listed on the NYSE right now.
Clearly you believe what ever the propaganda machine churns out. The question was not really a question, it was sarcasm. Chinese companies cook the books nation wide and they learned this behavior from their leaders who speak with forked tongues.
Thanks for the response. ;) My question was in fact sarcasm. I know Chinese companies cook the books wholesale. Many Chinese companies are way over leveraged and have learned this behavior from their leaders. The only thing thats kept them out of trouble is the worlds nations exporting their jobs and supply chains. When the tide changes, the risks will rise. Chinese companies routinely trade insolvent and some even list and raise finance in US capital markets. Luckin Coffee (Chinese Star Bucks) is a very basic example of the fake invoicing scams to prop up share prices. If you can't run a coffee shop, then you should get out of the kitchen and the heck out of town. Only reason they got a restructuring arrangement is to save face and shareholders.
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