- The House of Representatives, backed by the majority Democratic party, on Friday passed the America COMPETES Act of 2022 in a bid to promote competitiveness with China and boost the semi-conductor manufacturing in the US.
- The vote took place amidst the Congress’ criticism of the International Olympic Committee’s decision for awarding the Olympics game to China by a thin margin.
- The Bill was passed with a thin margin and is now set up for negotiations with the Senate before being tables before President Joe Biden for the final nod.
- The Bill aims to give American businesses a competitive edge in the global arena amidst the global shortage of semi-conductor supply.
- The Bill was passed after the House of representatives approved another legislation to strengthen the domestic supply chain and scientific research
- The Bill was, however, heavily criticised by the Republicans for furthering President Biden’s economic agenda in the guise of a anti-China measure. They also criticised the Democrats for not considering their views while passing the legislation.
- The Legislation will see the USA compete with China in semiconductor manufacture and research. The legislation aims to strengthen the existing supply chain and lower prices in order to outcompete China.
- The global semi-conductor shortage forced companies like Ford and General Motors to temporarily shut down their manufacturing units. US, once a global leader in the semi-conductor supply lost ground to China as it ramped up its production.
- The Bill provides a sum of $300 Bllion for research and development, including $52 Billion to subsidize semiconductor manufacturing and research pertaining key auto and computer components. It also provides for an expenditure of $45 Billion over six years to ease supply-chain problems.
- The Bill also authorised $8 Billion towards the Green Climate Fund established under the Paris Agreement for combatting climate change.
- The Bill has also called for changing the US Trade Rules to counter the market-distorting practices followed by China. The Bill aims to renew the Trade Adjustment Assistance program aimed at providing assistance to workers who have lost their jobs owing to heavy imports.
"Loved reading this piece by Megha?
Join LAWyersClubIndia's network for daily News Updates, Judgment Summaries, Articles, Forum Threads, Online Law Courses, and MUCH MORE!!"
Join LAWyersClubIndia's network for daily News Updates, Judgment Summaries, Articles, Forum Threads, Online Law Courses, and MUCH MORE!!"
