GT Voice: US ‘China tech bill’ creates new risks for bilateral ties – Community News
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GT Voice: US ‘China tech bill’ creates new risks for bilateral ties

China USA Photo: Global Times

China USA Photo: Global Times

Chinese and US leaders stressed the need for increased communication to manage differences and pursue win-win cooperation in areas of shared interest during a lengthy virtual summit on Tuesday. But in Washington, US lawmakers are trying to push forward the so-called “Chinese technology law,” which would include potential sanctions against Chinese companies.

US Senate Democratic Majority Leader Chuck Schumer said the annual National Defense Authorization Act (NDAA), due to pass this week, will be amended to include the US Innovation and Competition Act (USICA). , Reuters reported Tuesday.

Even against the backdrop of tensions between China and the US, the USICA is the latest attempt by the US Congress to use unilateral sanctions and other measures to stem China’s technological rise and maintain its technological hegemony. China’s foreign ministry has firmly opposed the legislation, which it says distorts the facts and reflects the Cold War mentality.

Even within the US, the bill remains highly controversial. After the US Senate passed USICA in June, the bill stalled in the House of Representatives.

The USICA aims to allocate $190 billion to bolster U.S. technology and research, with an additional $54 billion to increase production and research in semiconductors and telecommunications equipment.

But many argue that the current chip shortage is the result of temporary supply chain disruptions, which could of course be ironed out in the coming months; therefore, financing the semiconductor sector can only lead to overcapacity and oversupply in the longer term.

Also, the bill, which was originally only aimed at boosting research funding, now has more than 2,000 pages. The length and the bipartisan negotiations have already made people skeptical about the effect of the bill, even if it was signed into law.

In particular, the bill’s provisions targeting Chinese high-tech companies raise questions about the US’s attitude toward technology competition with China. For example, the bill would block the purchase of drones manufactured and sold by Chinese companies and create broad new mandatory sanctions for Chinese entities.

If it becomes a trend for the US to rely on economic sanctions to maintain its technological hegemony and if the US plans to carry out widespread repression against China’s development, the conditions for fair competition and cooperation between China and the US are seriously undermined.

If the US decides to use its hegemony to curb China as a competitor and harm China’s national interests, China will have to take all necessary steps to respond. Meanwhile, by building on its own strength, China is getting its own strategic initiative.

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Rakesh

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