Daily Management Review

US to boost technological competition with China


A bill to increase the US economy's competitiveness was adopted by the Senate by a majority vote.

The paper calls for lowering reliance on essential component sources (particularly semiconductors and telecom equipment), enhancing competition with Chinese high-tech enterprises, and taking extra steps to defend the US market.

Monday night, the United States Senate passed the America Competes Act, a bill focused primarily at reducing reliance on crucial goods suppliers.

The law, which is more than 2,000 pages long, intends to boost chip manufacture in the US and minimize supply shortages in semiconductors and telecoms equipment.

With a reference to the preservation of US national security, the bill provides economic incentives for chip manufacturing while also imposing trade restrictions.

This research will be funded through a dedicated fund. It is intended to spend $52 billion over six years to subsidize semiconductor production; another $45 billion will be spent on supply chain issues (including the provision of necessary components stock).

source: cnn.com