Schumer, Manchin announce deal on reconciliation bill with tax, climate, energy provisions
CNBCDec 26, 2022
The Facts
On Tues., US Pres. Biden signed a landmark bill to provide $52.7B in subsidies to semiconductor protection and research to make the US more competitive in the field against China.
With bipartisan support, the CHIPS and Science Act was passed by lawmakers in late July.
The Spin
Anti-China narrative
While the US continues to lead in the design of cutting-edge and essential semiconductors, it has become overly reliant upon foreign manufacturers, especially those in China and in Taiwan, which are subject to constant threats of PRC aggression. This bill is a crucial first step in the long overdue process of decoupling the US economy from China.
Pro-China narrative
The "Chips and Science Act," a bill intended to try and constrain China's inevitable rise as a global tech power, is too little too late as the US - the world's largest economy - continues to suffer from industrial hollowing-out, mounting debt, and runaway inflation. The bill effectively asks companies to choose: China or the US, and the US is not going to like the answer.