The U.S. House of Representatives has passed the America Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (America COMPETES) Act by a vote of 222-210.
The legislation will increase U.S. production of semiconductor chips, strengthen the supply chain to make more goods in America, and invest in scientific research and new technologies, while supporting strong labor standards and human rights, according to a press release issued by Congresswoman Madeleine Dean (D-PA).
The Act includes investments for:
- Semiconductor chips with $52 billion to support U.S. production of semiconductors — a key component in consumer electronics, cars, healthcare, defense systems, and other key products.
- Strengthening supply chains and manufacturing at home with $45 billion to improve our nation’s supply chains and strengthen our economy and national security by preventing shortages of critical goods and ensuring that more of these goods are made right here in the United States.
- Advancing American scientific research and innovation excellence with a suite of bipartisan science, research, and technology bills to increase American innovation.
- Promoting U.S. global leadership by positioning the interests and values of the United States to win on the world stage, including strong action to hold the People’s Republic of China accountable for its trade abuses and human rights violations.
In a statement from the White House, President Biden said, “Business and labor alike have praised this legislation as vital for continuing the economic momentum we’ve seen over the last year, and national security leaders from both parties have said that the investments in this bill are needed if we want to maintain our competitive edge globally. This bill was built on numerous bipartisan elements and on shared bipartisan agreement on the need to act. If House Republicans are serious about lowering prices, making our economy stronger, and competing with China from a position of strength, then they should come to the table and support this legislation, which does just that.”
Not everyone is so positive about the Act. The Competitive Enterprise Institute has lambasted the Act as being a lame attempt to imitate China’s policies, and has described the Act as “a mish-mash of competition-unrelated wish-list items and campaign-season pork.”
Forbes Magazine opined that what we really need instead is a separation of tech and state.
The Senate passed the United States Innovation and Competition Act (USICA) last July on a bipartisan vote of 68-32. Over the coming weeks and months, leaders from the House and Senate will seek to negotiate a final bill that can meet approval of 60 Senators and a majority in the House. If they manage to get the job done, it will be one of the last opportunities for significant bipartisan legislative achievement this Congress, according to many experts.