US approves $ 250 billion to increase competitiveness against China 1 minute read
Washington, Jun 8 (EFE).- The United States Senate approved Tuesday a bill with an expected expenditure of close to $ 250 billion that aims to increase national competitiveness to face China’s industrial and military power.
The project was approved by 68 votes in favor and 32 against, obtaining the support of senators from both parties.
US President Joe Biden celebrated the approval of the bill in the senate and asked the lower house to do the same.
“While other countries continue to invest in their own research and development, we cannot risk being left behind. The United States must maintain its position as the most innovative and productive nation,” the president said.
Potential Risks and Butterfly Effect of Economic Globalization theepochtimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theepochtimes.com Daily Mail and Mail on Sunday newspapers.
The Trump-led U.S. government was very angry that the American technology companies let China beat them to 5G. However, technological innovations never come cheap. The Chinese government is investing heavily in its technology companies. This is probably one of the reasons why the U.S. is linking them to the Chinese military. American chip companies warn that if the government fails to invest heavily in manufacturing and research, the United States’ will lose its technological dominance. Its leadership in key technologies will also be at risk.
The American Semiconductor Industry Association (SIA) called on the U.S. government to take “bold action” by providing subsidies or tax credits. The body claims that it would “make more components that drive U.S. economic growth, employment, and infrastructure”.
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INTRODUCTION
At the insistence of the United States, in 1986 Japan agreed to
limit its exports of semiconductors, mainly the dynamic random
access memory (DRAM) chips, to America. These chips are used in
high- tech consumer electronics equipment like computers and video
cassette recorders. The agreement expires this July 1, and the Bush
Administration thus soon must decide whether to renew it. Doing so
would make Washington a hypocrite in its free trade efforts to open
markets abroad for American products. The 1986 chip agreement,
after all, restricts trade, ostensibly to help some American
segments of the semiconductor industry. The agreement in fact has