Senate Dems propose new law to counter China’s threat.

Democrats Unveil “China Competition Bill 2.0” to Boost U.S. Investment and Deter Beijing

Staving off Competition from China

Senate Majority Leader Chuck Schumer (D-N.Y.) has unveiled a new proposal aimed at boosting U.S. economic investment and deterring Beijing from escalating conflict with Taiwan. The “China Competition Bill 2.0” builds off legislation signed into law last summer, authorizing more than $170 billion over five years to bolster domestic scientific research and $52 billion in new subsidies for manufacturers of semiconductors.

Limiting the Flow of Advanced Technology and Investment to the CCP

The bill aims to limit the flow of advanced technology and investment to the Chinese Communist Party (CCP) through exporting control laws, identify opportunities for new sanctions, and deter the Chinese regime’s coercion. It would also curtail the flow of investment to the CCP by authorizing the screening of investments in certain key sectors such as technology to prevent U.S. capital from going to Chinese companies.

Securing Domestic Economic Investment

The plan aims to secure domestic economic investment, taking into consideration areas such as biotech or bio-manufacturing among others, which Democrats say need increased funding. It also underscores America’s commitment to its economic allies while maintaining “partner alignment.”

Safeguarding America’s Allies and Partners

Finally, the Democrat plan would safeguard America’s allies and partners and their security by maintaining strategic alliances, with lawmakers citing China’s increasingly aggressive actions towards Taiwan. “We cannot allow China to initiate a conflict with Taiwan. The U.S. reaffirmed our commitment to Taiwan through last year’s NDAA, but we must consider additional policy actions to further deter China,” lawmakers said.

Working with Republicans to Put Together a Final Bill

Schumer said at a press conference on Wednesday after unveiling the blueprint that he and other Senate Democrats are looking to work with Republicans to put together a final bill on the matter within the next several months. The United States remains the preferred economic partner of the vast majority of the globe, and this bill aims to ensure that China’s so-called Belt and Road initiative does not go unchallenged while supporting our allies and partners.

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