US Senate passes $280 billion bill to counter China's chip manufacturing dominance

The United States on Wednesday (local time) passed a USD 280 billion Industrial Policy bill to counter China and enhance American competitive edge and national security. Amid China’s growing assertiveness and deteriorating relations with the US, the legislation reflected a remarkable and rare consensus in a usually polarized Congress as lawmakers touted a long-term strategy to address geopolitical rivalry with Beijing. The US measure would also lead to jobs in the country.

US President Joe Biden, “Today the Senate passed a historic bill that will lower costs and create jobs.  As Americans are worried about the state of the economy and the cost of living, the CHIPS bill is one answer: it will accelerate the manufacturing of semiconductors in America, lowering prices on everything from cars to dishwashers.”

“It also will create jobs – good-paying jobs right here in the United States.  It will mean more resilient American supply chains, so we are never so reliant on foreign countries for the critical technologies that we need for American consumers and national security,” he added.

Meanwhile, tensions between Beijing and Washington are also deteriorating over House Speaker Nancy Pelosi’s potential visit to Taiwan, US national security officials are silently convincing the American diplomat of the risks linked to her trip. While Pelosi's visit is being considered at a sensitive time between China and Taiwan, CNN cited sources familiar with the plans saying that the US House Speaker is planning to arrive in the self-governing island ‘in coming weeks’ during her broader trip to Asia. 

US-China tensions over Pelosi's Taiwan visit

As per the report, Pelosi has also invited both Democrats and Republicans to accompany her. Remarkably, if she goes to Taiwan, it would be the first sitting US House Speaker to visit in a quarter century. But, the potential trip has triggered tensions within US President Joe Biden’s administration especially as China has ramped up its assertive rhetoric when it comes to claiming authority over the self-ruled democratic islands. 

Moreover, China has sent warplanes into Taiwan’s self-declared air defence identification zone multiple times, which according to the US, could be precursors to even more severe steps by Beijing in the following months. According to the US media outlet, Biden administration officials have shared their concerns about Pelosi’s security during the trip and China’s response to the same. 

Image: AP