US Congress passes ‘America Competes Act’ to challenge ChineseTrade domination; special provisions for Semiconductors and supply chain

Washington: – The US Congress passed a new bill on challenging the increasing Chinese domination in international trade. The bill named ‘America Competes Act of 2022’ has provisions for reducing imports from China and incentivising US companies to start their factories. Financial assistance also has been announced in the bill for the semiconductor sector and strengthening the supply chain.

During the tenure of former President Donald Trump, the United States had started an aggressive conflict with China on the diplomatic and trade front. Trump had started a trade war against China, accusing that China was only looting the United States. Aggressive decisions targeting Chinese companies, products and technology had been taken by the Trump administration. It was revealed that, disturbed by this Trump action China started pressurising the new administration in the United States. Biden had taken certain decisions favouring the Chinese communist regime after taking over as the President.

But the increasing discontent in the US population and the severe opposition faced on the political level has forced the Biden administration to adopt a stand against China. The bill ‘America Competes Act of 2022’ is considered part of the same thing. The US Senate had passed this bill in the last year itself. But the House of Representatives, which the ruling Democrat party dominates, had suggested many amendments to the bill. The bill was passed after incorporating those amendments.

‘America Competes Act of 2022’ has a provision of $50 billion for the semiconductor sector. This funding will be made available to the US companies having their factories in China to shift them to the United States. At the same time, there also is a provision of $45 billion to fund as a grant or debt for strengthening the supply chain and indigenous manufacture of sensitive items. It is also being said that the workers who lost their jobs or were forced to take a pay cut due to factories migrating to China will also be given financial assistance.