US Senate approves allocation of $250 billion to compete with China

The money will go to research and high-tech manufacturing to maintain leadership in innovation.

US Senate approves allocation of $250 billion to compete with China

The Senate of the US Congress has approved $ 250 billion in research funding and high-tech industries designed to maintain the US leadership in innovation against the backdrop of competition with China. This was reported by Radio Liberty on Wednesday, June 9.

The main item of expenditure is determined to support the American semiconductor industry, which is to receive $50 billion in government investment. In 1990, the United States accounted for 37% of all semiconductors produced in the world, but now it is 12%. Lawmakers fear the US is becoming overly dependent on foreign manufacturers in this key technology-driven area. It is pointed out that the shortage of semiconductors that arose during the pandemic showed the growing role of China in their production.

In addition, hundreds of billions of dollars are allocated to funding public research centers, grants to private firms and universities to encourage developments that could be technological breakthroughs.

One of the initiators of the bill, Democratic Senator Chuck Schumer stressed that countries developing technologies related to artificial intelligence, quantum computing and innovation will change the world in their own image and likeness.

“Either we surrender the role of world leader to our rivals, or we pave the way for another generation of American leadership”, – says Schumer.

In turn, opponents of the bill argue that the state should not interfere in market processes on such a large scale. In their opinion, so far, private capital has successfully shown promising directions in technology and, with its investments, has provided the United States with the role of a world leader in this area.

Recall that earlier US President Joe Biden blacklisted 59 companies from China. Biden’s decree expands the US government’s ability to respond to threats from Chinese companies in the field of tracking technology.

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