US microchip bill will disrupt global supply chains, int'l trade: Wang
The Chips and Science Act will have negative implications for China and other economies.
The newly-adopted Chips and Science Act of 2022, which was passed by US President Joe Biden on Tuesday, not only holds the purpose to compete against China's technological innovation and market, but also a more troublesome role: According to Chinese foreign ministry spokesperson Wang Wenbin, the bill will disrupt global supply chains and hamper international trade.
Wang asserted China's opposition to such behavior.
See more: Is the Cold War Back?
On Tuesday, Biden signed the landmark bill which will allocate $52.7 billion to subsidize semiconductor production and research.
"The United States stated that the act aims to increase the competitiveness of US technologies and the semiconductor production, however this act provides huge subsidies to US enterprises producing chips and introduces a differentiated policy of industry support, some provisions of which, among other things, restrict the normal investment and trade and economic activities of relevant Chinese enterprises, as well as normal scientific and technical cooperation between China and the US," Wang explained at a briefing.
According to Wang, the ministry expects all these to "disrupt global supply chains and hinder international trade," asserting that "China is strongly opposed to this."
He said that the United States is free to choose its own development methods, but the methods should not harm China's development and it must respect World Trade Organization rules and principles of transparency and non-discrimination, while also safeguarding global production and supply chains.
A 'once-in-a-generation' investment?
"The future is going to be made in America," Biden said, calling the measure "a once-in-a-generation investment in America itself."
Republicans, as well as Democrats, joined Biden on the White House lawn as the US President signed the CHIPS bill that was distilled years in Congress before getting approval.
Attending the signing were the chief executives of Micron, Intel, Lockheed Martin, HP and Advanced Micro Devices. Furthermore, the governors of Pennsylvania and Illinois, in addition to the mayors of Detroit, Cleveland and Salt Lake City, and lawmakers were at the event.
The shortage has been affecting everything from cars, weapons, and washing machines to video games: Thousands of cars and trucks remain parked in southeast Michigan awaiting chips.
This legislation will allow $200 billion over a decade to boost technology research that will compete with Beijing - however, Congress will need to pass separate appropriations legislation to fund those investments.
The Chinese Embassy in Washington said Beijing "firmly opposed" the bill as it strikes as a "Cold War mentality."