Biden Signs Industrial Policy Bill Aimed at Bolstering Competition With China

WASHINGTON — President Biden on Tuesday signed a staggering $280 billion bill aimed at addressing global supply chain problems and boosting American chip manufacturing to counter China’s rising influence. Did. Legislative victory slate.

Biden, who stood before business leaders and lawmakers at the Rose Garden, said the bill would allow Washington’s bipartisan government to build a technology sector, bring semiconductor manufacturing back to the United States, and ultimately create thousands of new American jobs. He said he has proven that he can create a bill that creates. .

“There are fundamental changes taking place today, politically, economically and technologically,” Biden said. change that

The bipartisan compromise showed a rare consensus in deeply divided Washington, reflecting a sense of urgency among both Republicans and Democrats for an industrial policy that could help the US compete with China. Seventeen Republicans voted in favor of the bill in the Senate, and 24 Republicans supported it in the House.

While Republicans have long resisted intervening in global markets, and Democrats have criticized funneling taxpayer money to private companies, a shortage of global supply chains exacerbated by the pandemic has left the U.S. have become dependent on foreign countries for the advanced semiconductor chips used in their technology. From electric vehicles to weapons sent to help Ukraine.

In a sign of how Beijing’s rise has fueled negotiations on the bill, Mr. Biden repeatedly mentioned China in his remarks at the bill-signing ceremony.

“No wonder the Chinese Communist Party aggressively lobbied American companies against this bill,” the president said, adding that the United States must lead the world in semiconductor production.

The bill, which focuses on domestic manufacturing, research and national security, provides $52 billion in subsidies and tax credits to companies that make chips in the United States. Also included is his $200 billion for new manufacturing initiatives and scientific research, especially in areas such as artificial intelligence, robotics, quantum computing and other technologies.

The law authorizes and funds the creation of 20 “regional technology hubs” aimed at linking research universities and private industry to foster innovation in resource-scarce regions. increase. It also provides funding to the Department of Energy and the National Science Foundation to build basic semiconductor research and workforce development programs.

“We will bring these jobs back to our shores and end our reliance on foreign chips,” said New York Democrat and Majority Leader Senator Chuck Schumer, stepping toward the podium. I raised my fist when I stepped in.

Schumer, who spearheaded the bill, at one point noted that it was once called the Infinite Frontiers Act, hinting at a years-long quest to secure its passage. .

“I still love that name,” Schumer said.

“I’ve always said Democrats are willing to work with Republicans wherever possible,” he added. “And with today’s signature, we celebrate such an achievement.”

Democrats hope the passage of the Industrial Policy Act and several other high-profile bills, along with falling gas prices, will help the party turn around ahead of November’s midterm elections. Democrats face a bleak outlook heading into the fall, with Mr. Biden struggling with dismal approval ratings amid soaring inflation and rising prices.

Biden plans to sign a bill on Wednesday that expands medical care for veterans exposed to the toxic burns of military bases. This is another measure approved by Congress with bipartisan support. And on Friday, the House is expected to pass the climate, health and tax bill that passed the Senate over the weekend, handing the president a legislative victory.

Efforts to publicize his recent string of victories followed a case in which Mr. Biden was forced into isolation during a match against Covid-19 and then rebounded. I traveled to see a survivor of a severe flood, his first business trip since he tested positive for the virus on July 21st.

At Tuesday’s ceremony, Mr. Biden coughed persistently during his remarks at the rose garden. White House officials said he tested negative for the virus again on Monday and Tuesday morning, ending a four-day streak of negative tests. extended continuously.

Biden’s aides now plan to garner support over recent legislative successes by sending ministers across the country to draw attention to the measures.

“There have been ups and downs, it’s been a long road to get here,” Commerce Secretary Gina Raimond said at the ceremony. “And the president said don’t give up. Don’t give up. Don’t stop.”