U.S. Senate votes to open debate on China tech bill

imageStock Markets35 minutes ago (May 17, 2021 07:16PM ET)

(C) Reuters. FILE PHOTO: Chinese and U.S. flags flutter outside a company building in Shanghai, China April 14, 2021. REUTERS/Aly Song/File Photo

By David Shepardson

WASHINGTON (Reuters) – The U.S. Senate voted 86-11 Monday to open debate on a measure authorizing more than $110 billion for basic and advanced technology research over five years in the face of rising competitive pressure from China.

The Endless Frontier Act would authorize most of the money, $100 billion, to invest in basic and advanced research, commercialization of the research, and education and training programs in key technology areas like artificial intelligence (AI).

Senate Democratic Leader Chuck Schumer said the Senate will debate the bill for a week or two beginning on Tuesday.

“We can either have a world where the Chinese Communist Party determines the rules of the road for 5G, AI, and Quantum (NASDAQ:QMCO) Computing — or we can make sure the United States gets there first,” Schumer said, calling it a “once-in-a-generation investment in American science and American technology.”

The bill under consideration includes $2 billion to boost semiconductor production and research for the auto and defense sector, but a group of senators are also working on a measure to include $52 billion for chips, according to draft summary of a proposal.

Despite discussions throughout the weekend, no final agreement on funding chips provisions that were authorized in a defense bill adopted in January have been reached.

Other China related bills are likely to be included in a final package.

Schumer said the bill “will fortify weak spots in our economy like semiconductors.”

The White House said Monday it supports the Endless Frontier bill that “would authorize historic investments in critical science and engineering research, from artificial intelligence to advanced energy… It would strengthen scientific research and technology commercialization activities at academic institutions across the country.”

Republican Senator Steve Daines said he will introduce an amendment this week to include critical mineral production as part of a new program to help the United States remain globally competitive.

U.S. Senate votes to open debate on China tech bill

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