The US Senate has approved a major spending package aimed at boosting domestic technology research and production, in a move widely seen as a response to China's growing technological ambitions. The bill, which passed with 68 votes in favour and 32 against, authorises roughly $250bn (£176bn) for semiconductor development, manufacturing subsidies, and other tech initiatives.
Senate Majority Leader Chuck Schumer hailed the legislation as a historic investment, stating it would enable the United States to 'out-innovate, out-produce, and out-compete the world in the industries of the future.' The package includes provisions targeting China, such as a ban on TikTok on government devices and restrictions on drones from Chinese state enterprises.
Chinese foreign ministry spokesman Wang Wenbin criticised the bill, accusing it of 'exaggerating the China threat' and containing 'Cold War and zero-sum thinking.' He warned that the legislation could harm recent efforts to thaw US-China relations, which saw virtual trade talks in May and an agreement to restart normal communications.
The bill must still pass the House of Representatives and be reconciled before President Joe Biden can sign it into law. Biden welcomed the Senate's move, saying, 'We are in a competition to win the 21st century, and the starting gun has gone off.' The computer chip shortage, which has hit global automobile production, adds urgency to the legislation.
