China Opposes Semiconductor Bill Because It Will Give U.S. Advantage - U.S. Commerce Chief
Date
5/12/2022 12:06:23 AM
(MENAFN- Trend News Agency)
U.S. Commerce Secretary Gina Raimondo said Wednesday the Chinese
government opposes an effort in congress to ramp up U.S.
semiconductor manufacturing because it will give the United States
more of a competitive punch, Trend reports citing Reuters .
On Thursday, U.S. lawmakers will open formal negotiations on a
compromise measure that would fund $52 billion in semiconductor
manufacturing subsidies and boost U.S. competitiveness with Chinese
technology. It could still take months to reach a final deal.
Republican Senator Shelley Moore Capito asked Raimondo at a
Senate Appropriations subcommittee hearing about a Reuters story
and other reports that China had been pushing U.S. executives,
companies and business groups to fight against China-related bills
in Congress.
'It doesn't surprise me at all. China doesn't want us to pass
this bill. They know that this bill will enable us to outcompete
them,' Raimondo said, saying China had invested $160 billion in
domestic semiconductor production. 'The last thing they want is for
us to invest $52 billion.'
Raimondo said she had heard the reports China was lobbying U.S.
businesses, saying they were 'deeply concerning ... The reason
China is so against it is because they know how important it is for
us.'
The Chinese Embassy did not immediately comment.
Reuters reported in November China's embassy in Washington had
sent letters pressing executives to urge members of Congress to
alter or drop specific bills that seek to enhance U.S.
competitiveness, according to the sources and the text of a letter
sent by the embassy's economic and commercial office seen by
Reuters.
Chinese officials warned companies they would risk losing market
share or revenue in China if the legislation becomes law, according
to the text of the letter.
China has said it opposes such legislation, arguing it stokes
anti-China sentiment and it's based on Cold War-era thinking.
A persistent shortage of chips has disrupted the automotive and
electronics industries, forcing some companies to scale back
production. Raimondo and others have called boosting chips
production a national security issue.
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