China Opposes Semiconductor Bill Because It Will Give Us An Advantage – Commerce Secretary Raimondo

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U.S. Commerce Secretary Gina Raimondo said on Wednesday that the Chinese government opposes a congressional effort to speed up U.S. semiconductor manufacturing because it would give the United States more competitiveness.

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 agreement.

Republican Senator Shelley Moore Capito questioned Raimondo during a Senate Appropriations Subcommittee hearing about a Reuters story and other reports that China pushed U.S. leaders, corporations and business groups fight China-related bills in Congress.

“It doesn’t surprise me at all. China doesn’t want us to pass this bill. They know this bill will allow us to surpass them,” Raimondo said, claiming that China had invested $160 billion. in the domestic production of semiconductors. “The last thing they want is for us to invest $52 billion.”

Raimondo said she had heard the reports that China was pressuring American companies, saying they were “deeply concerned. The reason China is so against it is because they know at what that’s important to us.”

The Chinese Embassy did not immediately comment.

Reuters reported in November that the Chinese Embassy in Washington sent letters urging leaders to urge members of Congress to amend or drop specific bills aimed at improving U.S. competitiveness, the sources said. and the text of a letter sent by the Economic and Commercial Department of the Embassy. office seen by Reuters.

Chinese officials have warned companies that they 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 that it fuels anti-China sentiment and is based on Cold War-era thinking.

A continuing shortage of chips has disrupted the automotive and electronics industries, forcing some companies to cut production. Raimondo and others have called the increase in chip production a national security issue.


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