The US House of Representatives’ competition bill is about to be passed this week According to Reuters

By David Shepardson and Patricia Zengerle

WASHINGTON (Reuters) – The U.S. House of Representatives on Wednesday passed a multi-billion dollar bill aimed at increasing U.S. competitiveness with China and boosting U.S. semiconductor production, introducing legislation to be fully passed by parliament this week.

The administration of Democratic President Joe Biden is trying to convince Congress to pass a bill, which includes $52 billion to subsidize semiconductor research and production, due to shortages of critical components. The importance of being used in cars and computers is exacerbated by supply chain bottlenecks.

The Democratic-controlled House of Representatives passed the rule for the “Erase America Act” from 219 to 203, largely along party lines. House aides said they expect a vote to pass the measure in full on Friday, after considering several amendments.

The bill has several commercial provisions and would also allow the United States to contribute $8 billion to the Green Climate Fund, established by the Paris Agreement to combat climate change, to help developing countries cope with climate change. deputy.

Republicans have proposed an amendment to strip that funding. Three Democrats want to boost it by $3 billion.

House Speaker Nancy Pelosi last week said the 2,900-page bill would “boost” investment in chips, boost US manufacturing and research and enhance US leadership in the face of a China is rising.

Republicans in the House complained that Democrats did not include them in the bill. They harshly criticize the climate provisions and say they can be used to help Beijing.

Representative Michael McCaul, a Republican on the top House Foreign Affairs Committee, said: “Republicans are a strong ‘no’.

Representatives Alexandria Ocasio-Cortez and Cori Bush filed an amendment last week that would prohibit semiconductor companies that receive government subsidies from paying dividends or buying back company shares.

The Senate passed its own bill – the US Competition and Innovation Act – in 68-32 in June. That act includes $52 billion to increase domestic semiconductor production and authorizes $190 billion in American technology and research to compete with China.

The House bill authorizes $45 billion to strengthen the supply chain and manufacture of essential items for healthcare, communications and other sectors.

If the House’s full measure passes, the Senate and House will have to adjust the difference between their bills. The final version will be sent back to both houses for full approval and then, if the legislation is passed, forwarded to Biden for his signature.