The US Senate has voted 68-32 to approve a sweeping package of legislation intended to boost the country’s ability to compete with Chinese technology.
The measure authorises about $190 billion for provisions to strengthen US technology and research and would separately approve spending $54 billion to increase U.S. production and research into semiconductors and telecommunications equipment.
This will include $2 billion dedicated to chips used by automakers that have seen massive shortages and made significant production cuts.
The bill also seeks to counter Beijing’s growing global influence through diplomacy, by working with allies and increasing US involvement in international organisations after Republican former President Donald Trump’s “America First” agenda.
The bill must pass the House of Representatives to be sent to the White House for Biden to sign into law. It is not clear what legislation in the House will look like or when it might take it up.
Senate Majority Leader Chuck Schumer, a co-sponsor of the measure, warned of the dire consequences of not funding research to keep up with China.
But China’s parliament expressed “strong indignation and resolute opposition” to the bill.
It said in a statement that the US bill showed “paranoid delusion of wanting to be the only winner” and had distorted the original spirit of innovation and competition.
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