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U.S. House to hold procedural vote on China competition bill on Wednesday-source

Published 02/01/2022, 07:41 PM
Updated 02/01/2022, 07:45 PM
© Reuters. FILE PHOTO: The flags of the United States and China fly from a lamppost in the Chinatown neighborhood of Boston, Massachusetts, U.S., November 1, 2021.   REUTERS/Brian Snyder

WASHINGTON (Reuters) - The U.S. House of Representatives plans a procedural vote on Wednesday on a bill https://www.reuters.com/business/us-house-leaders-set-unveil-chips-china-competition-bill-2022-01-25 aimed at increasing U.S. competitiveness with China and supporting the U.S. chip industry, according to a source familiar with the decision.

President Joe Biden's administration is pushing to persuade Congress to approve the bill, which includes $52 billion to subsidize semiconductor manufacturing and research, as shortages of the key components used in autos and computers have exacerbated supply chain bottlenecks.

If the procedural vote succeeds in the narrowly Democratic-controlled House, the full chamber would aim to vote on the full bill on Friday.

House Speaker Nancy Pelosi last week said the 2,900-page bill, called the "America Competes" act, would "supercharge" investment in chips and boost U.S. manufacturing and research capacity, as well as advancing U.S. competitiveness and leadership.

© Reuters. FILE PHOTO: The flags of the United States and China fly from a lamppost in the Chinatown neighborhood of Boston, Massachusetts, U.S., November 1, 2021.   REUTERS/Brian Snyder

The Senate passed the U.S. Innovation and Competition Act last year, which includes $52 billion to increase U.S. semiconductor production and authorizes $190 billion to strengthen U.S. technology and research to compete with China.

The House bill has key differences with the Senate version. It does not contain the $190 billion for technology and research, but does include $45 billion to support supply chain resilience and manufacturing of critical goods, industrial equipment and manufacturing technology.

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