It would be a bipartisan step away from Clinton-Bush years and more like policies under Trump.
Congress is making an attempt to direct the power of the federal government to bolster industries deemed necessary to compete with China in technology, a form of economic competition that is a reversal from the approach of the 1990s and 2000s. The House of Representatives last week advanced legislation to boost scientific research, subsidize semiconductor manufacturing, and generally buttress the tech sector. It follows legislation that passed last year in the Senate on a bipartisan basis.
The legislation would put the U.S. in a more confrontational posture with China. Doing so would be following the direction set by President Donald Trump, who sought to rearrange the terms of trade with China and signed major legislation intended to counter China’s “Belt and Road” global infrastructure initiative.
The legislation, if passed, would be one more bipartisan step away from the direction of the Clinton and Bush eras when the government pursued trade liberalization with China and great integration between the two nations. Under President Trump, and now under President Biden, parties on both sides of the aisle favor preparing for a future that may force the U.S. into conflict with China.
A major portion of the bill is the formation of several regional innovation hubs across the country. It would also empower the Department of Commerce to use tax and regulatory incentives, workforce development, public-private partnerships, and other methods to found and nurture the hubs.
As the Lord Leads, Pray with Us…
- For members of Congress as they seek to support economic competition with China.
- For officials within the Department of Commerce as they work on trade programs and projects.
- For the president’s administration as conflict with China becomes increasingly likely on many fronts.
Sources: AP, NPR
