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1、House of Dragonslayers:The 117th Congress Legacy on China and Implications for Future Bilateral Trade and Technology EngagementYilun ZhangAmanda(Yue)JinAlec CaruanaNOVEMBER 2022House of DragonslayersIIIIINovember 2022The Institute for China-America Studies is an independent think tank in Washington

2、D.C.ICAS focuses on the evolving dynamics in the U.S.-China relationship to promote greater collaboration and mutual understanding through sincere exchanges of fresh ideas,objective policy-oriented research,and fair assessments of this critical bilateral relationship.Our research covers China-U.S.st

3、rategic relations,maritime security,economics,trade and technology relations,climate change and environment policy,global governance,and other issues central to the bilateral relationship.Ultimately,we aim to provide a window into the worldviews of both the United States and China,and thereby serve

4、as a vehicle to promote greater understanding between these two countries and societies.ICAS is a 501(c)3 nonprofit organization.ICAS takes no institutional positions on policy issues.The views expressed in this document are those of the author(s)alone.2022 by the Institute for China-America Studies

5、.All rights reserved.Cover Image:The first session of the 117th Congress in the House Chamber at the US Capitol on January 3,2021 in Washington,DC.(Source:Getty Images,Photo by Tasos Katopodis)Institute for China-America Studies 1919 M St.NW Suite 310 Washington,DC 20036 202 968-0595|www.chinaus-ica

6、s.orgAbout ICASHouse of DragonslayersIVThis report would not have been possible without the support of the ICAS Trade n Technology Program and the programs past analytical works.We would like to express our deepest gratitude to Jessica Martin and the rest of the ICAS team for their generous support

7、throughout the making of this endeavor.YZ,AJ&AC About the AuthorsAcknowledgementsYilun Zhang is a Research Associate and Administrative Officer at the Institute for China-America Studies.He is also the manager of the ICAS Traden Technology Program.His key area of research pertains to U.S.-China rela

8、tions,trade and technology,security and the international relations in the Indo-Pacific region.His areas of specialization include:analysis of the U.S.-China strategic competition on security and trade and technology;analysis of major power relationships in East Asia(China-Japan-South Korea-U.S.)and

9、 trending issues in the Indo-Pacific region;analysis on the security dynamics in East Asia;and geospatial analysis of the security dynamics in the Indo-Pacific and Arctic region.He holds a masters degree in international relations with a concentration on international political economy from the Paul

10、 Nitze School of Advanced International Studies,Johns Hopkins University.Amanda(Yue)Jin is a Research Assistant intern at the Institute for China-America Studies and a member of the ICAS Trade n Technology Program team.Her research interests include the U.S.-China technology and innovation competiti

11、on,the governance of data and new technologies,and the international law of the sea.She holds a B.A.in Political Science/International Relations from Carleton College and a J.D.from Harvard Law School.She is currently pursuing a Masters degree in International Relations at the Paul Nitze School of A

12、dvanced International Studies,Johns Hopkins University.Alec Caruana is a Research Assistant Intern at the Institute for China-America Studies and is a member of the ICAS Maritime Affairs Program team.He received a BSc in International Relations and History from the London School of Economics and Pol

13、itical Science specializing in cartographic history,American foreign policy,and Chinese involvement in the Global South.He is currently pursuing a masters degree in International Affairs taught jointly by Peking University and the LSE.VNovember 2022I-II EXECUTIVE SUMMARY1-2 PART I|INTRODUCTION3-21 P

14、ART II|TO PLAY THE CHINA CARD:REVIEWING THE 117TH CONGRESS LEGACY ON CHINA22-26 PART III|RED DRAGON OR RED HERRING?:THE CHINA FACTOR IN THE U.S.MIDTERM ELECTIONS27-31 PART IV|WHAT TO LOOK FOR IN THE 118TH CONGRESS?32 PART V|CONCLUSIONS AND IMPLICATIONS33-36 ENDNOTESContentsBOXES&TABLESTABLE 1:Select

15、 Provisions that are Shared by USICA and AmCOM but Excluded from the CHIPS and Science ActTABLE 2:Manufacturers Top Choice of Provisions to be Included in a China Competition LegislationTABLE 3:Policy Purpose and Objective of the House Democratic Leadership and the White House Concerning the Competi

16、tion BillTABLE 4:Research and Innovation Provisions of USICA and America COMPETES ActTABLE 5:Amount of Funding Authorized by the Semiconductor Division of the CHIPS and Science ActTABLE 6:Select Provisions of Controversy in USICA and AmCOMBOX 1:Creating Helpful Incentives to Produce Semiconductors A

17、ct(CHIPS for America Act 2021)Summary of the ProvisionsHouse of DragonslayersVIINovember 2022As the Biden administration continues to emphasize U.S.strategic competition with China,China has become a central focus of the 117th Congress over the past two years.Legislation was proposed,discussed and s

18、ome adopted as law that directly addressed China on a variety of issues ranging from trade policy,technology and innovation competition,export controls,to measures targeting specific regions,specific industries,and specific public or private practices.During the last two years,the 117th Congress obs

19、erved and experienced first-hand the consequences of the free fall that the U.S.-China bilateral relationship underwent during the Trump administration,and they consistently maintained this inertia throughout its duration.The 117th Congress could do little to reverse the trajectory or repair the bil

20、ateral relationship not only because of the personal beliefs of certain outspoken members of Congress,but also due to the general deterioration of the American public opinion on China indeed,no one shall go against the will of the voters.The complication of excess domestic lobbying,accompanied by th

21、e further deterioration of the U.S.-China relations on the international stage,has further raised unnecessary alarm on the Chinese side as Beijing interprets lobbying and political messages from the U.S.domestic discussions as proof of U.S.intention to further contain or even undermine Chinas rise.W

22、ith the new congressional meeting starting in 2023,the 118th Congress will inherit both the deteriorating U.S.-China relations and the increasingly extreme rhetoric concerning China.As developments of the midterm election have Executive SummaryHouse of DragonslayersIIshown,China is a major issue to

23、address for both the Democratic and the Republican party.As the presidential election becomes an increasingly hot domestic issue 2023-2024,the uncertainties of U.S.domestic politics will only increase.With Biden and Trump as the most likely finalists,the discussion over China and how the United Stat

24、es should continue to approach China will become the most dominant,if not only,issue on the candidates foreign policy agenda.In order to avoid turbulence caused by another incident in the like of Pelosis visit to Taiwan,an U.S.-China legislative dialogue should be established to avoid technology and

25、 trade issues from running into unknown and mutually harmful grounds.To use the newly elected 118th Congress and Chinas new Peoples Congress as a fresh start,both countries should increase communication on the legislative level and incorporate first-hand inputs from the business communities to stabi

26、lize the relationship.As developments in the bilateral relationship and in global events have led to increasing unpredictability and calls for more appropriate management,emerging policy issues in the field will require better coordination or at least sufficient communication between the two sides t

27、o avoid misunderstanding of intention and unnecessary escalation of tensions.1November 2022As the Biden administration continues to emphasize U.S.strategic competition with China,China has become a central focus of the 117th Congress over the past two years.On the one hand,legislation was proposed,d

28、iscussed and some adopted as law that directly addressed China on a variety of issues ranging from trade policy,technology and innovation competition,export controls,to measures that target specific regions,specific industries,and specific public or private practices.On the other hand,even major bil

29、ls that do not directly address China e.g.the domestic-focused Infrastructure Investment and Jobs Act and Inflation Reduction Act of 2022,were associated with the strategic competition with China and discussed accordingly during the legislative process and,after they became law,in the implementation

30、 process.Most notably,both the lengthy legislative process of the“China competition bill”and the final enactment of the CHIPS and Science Act were defining moments of the 117th Congress.Even when the bill represented only a trimmed version of the most ambitious drafts of either the Senates United St

31、ates Innovation and Competition Act(USICA)and the Houses America COMPETES Act(AmCOM),and even when it took significantly longer than expected or planned to pass,the bill was marked as a key legislative progress of the 117th Congress,the congressional leadership and other major supporters of the bill

32、.In addition to the competition-focused legislations,the 117th Congress also continued to push for legislation to address increasingly negative U.S.views and issues that the U.S.and its public view as critical grievances towards the Peoples Republic of China.Human rights issues continue to be a pers

33、istent topic on which this Congress seeks to press China for changes.That said,unlike past legislation that focuses more on addressing the concerns and making the voices heard,the 117th Congress apparently seeks to put more pressure on China to address human rights issues through unilateral economic

34、 sanctions.Many of these sanction-based legislations are coincidentally overlapping with areas that are closely related to the U.S.-China bilateral trade and technology engagement,such as the sanctions suggested for the Chinese solar products,which are primarily produced from Xinjiang,where China is

35、 allegedly conducting problematic reeducation programs that mistreat its Uyghur minority.This had further complicated the 117th Congress move on China as economic benefits and technological decoupling came into play.In Summary:PART IIntroductionHouse of Dragonslayers2The 117th Congress efforts to em

36、power the American manufacturing industry and to address concerns over Chinas rapidly developing innovative capabilities also put it in a leading position in advocating for further decoupling between the U.S.and China for various reasons.The 117th Congress not only seeks traditional federal investme

37、nt-based industrial policies to“Out-China”China,but also shows certain signals to develop legislations that are designed to further decouple the two countries,and contain or even hurt Chinas development,at least in the short run.To address increasing American concerns over the issue of Taiwan,the 11

38、7th Congress also played a significant role in showcasing more American support for Taiwan and demanding a clearer position from the administration.Given Taiwans important role in the global semiconductor supply chain,as well as the economic potential of its market,the 117th Congress proposed moves

39、on Taiwan could have significant impact on both the geopolitical and trade and tech engagement between the U.S.and China.With clocks ticking,the 2022 midterm elections could present a potential change of the American domestic political landscape.While the elections tend to focus more on domestic iss

40、ues,China inevitably became a hot topic for both incumbent and challenging candidates.As many of the China-related legislations remained in the pipeline,the upcoming 118th Congress would play an important role in deciding the future trajectory of the U.S.-China bilateral relations,especially their b

41、ilateral trade and technological engagements.What are the consistent and persistent issues that we could expect the 118th Congress to inherit from the 117th?What are the newly emerged issues under the 117th Congress that could further expand under the 118th?What could the election results of the mid

42、terms tell about the 118th?This report will take a close look to some of the signature legislations under the 117th Congress,the ongoing campaigning of the 2022 midterm elections and the discussion over China,and provide an analysis of these above questions.3November 2022China has been a focal point

43、 in the 117th Congress,the first meeting of Congress under the Biden-Harris administration.In addition to congressional hearings and committee discussions,much focus has been placed on legislative efforts.Up to October 2022,the 117th Congress proposed 798 bills and resolutions that mentioned“China,”

44、a number higher than either meeting of Congress under the Trump administration.1In the field of trade and technology,the most notable bill that became law is the CHIPS and Science Act,a trimmed version of the China competition bill.2 At the same time,other major legislative progress under the Biden

45、administration have also been associated with the strategic competition with China,including the more domestic-focused Infrastructure Investment and Jobs Act and Inflation Reduction Act of 2022.Meanwhile,a number of China-related bills remain in the pipeline.As the CHIPS and Science Act primarily ad

46、dresses the semiconductor industry and government support for R&D,other provisions remain under discussion.These include a number of trade and foreign policy-focused provisions that were present in both the Senates United States Innovation and Competition Act(USICA)and the Houses America COMPETES Ac

47、t(AmCOM)(see Table 1)as well as the more controversial and ambitious ones such as tariff reforms and outbound investment screening.Additionally,both chambers of Congress have proposed and even started to discuss some versions of the Taiwan Policy Act,which could have a significant technology and tra

48、de portion.During the last two years,the 117th Congress observed and experienced first-hand the consequences of the free fall that the U.S.-China bilateral relationship underwent during the Trump administration,and they consistently maintained this inertia throughout its duration.The 117th Congress

49、could do little to reverse the trajectory or repair the bilateral relationship not only because of the personal beliefs of certain outspoken members of Congress,but also due to the general deterioration of the American public opinion on China indeed,no one shall go against the will of the voters.In

50、Summary:PART IITo Play the China Card:Reviewing the 117th Congress Legacy on China House of Dragonslayers4TABLE 1:Select Provisions that are Shared by USICA andAmCOM but Excluded from the CHIPS and Science Act4 ProvisionsLevel of DivergenceChina and global supply chain:authorizes$15 million per year

51、,2022-2026,to hire experts that will assist interested U.S.businesses with supply chain challenges related to ChinaNearly identicalGlobal infrastructure:Requires the President to develop a strategy on providing alternative infrastructure assistance to foreign governments;authorizes$75 million per ye

52、ar,2022-2026 to implement the strategy Requires the Executive Branch to comprehensively target Chinas predatory lending and financing in the energy sector of developing countriesMinor divergenceDigital commerce:Authorizes the establishment of the“Digital Connectivity and Cybersecurity Partnership”to

53、 help foreign countries with internet access,free flow of data,cybersecurity,and promote U.S.ICT exportsNearly identicalStrategic partnership:Commits to deepen diplomatic,economic and security cooperation with allies and partners in the Indo-Pacific Commits to strengthen engagement with Quad Sets ou

54、t policy priority on cooperation with ASEAN Commits to enhance U.S.-Taiwan economic,political and security relationship,including on Taiwans involvement in international orgs Requires report to address Chinese Fentanyl trafficking Authorizes$100 million per year,2022-2026 against disinformation insi

55、de and outside of ChinaMinor divergenceInternational Security Authorizes$45 million,2022-2026 on military training and education in Indo-Pacific Requires report on building security capacities in Indo-Pacific Reemphasizes commitment to freedom of navigation in South China Sea Directs a report on str

56、ategy against Chinas nuclear and ballistic missile issues and one specifically on Chinas transfer of ballistic and nuclear technology to the Middle EastNearly identical5November 2022That being said,the failure of this 117th Congress is to further escalate the deterioration of U.S.-China relations in

57、to fields that are not necessarily of contention between the U.S.and China over the past five decades.Therefore,when analyzing the achievements and wrongdoings of this 117th Congress,it is important to distinguish between issues where the U.S.has long-standing grievances against China,e.g.intellectu

58、al property rights and market access concerns,and issues that were newly proposed by the members of the 117th Congress,e.g.supply chain resiliency,technological,economic and financial decoupling with China,etc.Admittedly,there are valid emerging concerns among those newly proposed issues that past a

59、dministration and Congress either overlooked or did not foresee,e.g.Chinas rise,Chinas progress in innovation and Chinas technological development in AI,supercomputer,telecom and data governance.However,the sad reality is that an evil amalgama of increasingly negative public views against China,over

60、-exaggeration of the“China factor”for domestic political gains and the occasional overreaction or sometimes,even more aggressively,hysteria to the shifting balance of power between U.S.and China,has turned into a major roadblock to securing a path towards a benign and manageable U.S.-China competiti

61、on.Take the CHIPS and Science Act,a major component to the“China competition bill series”per Congress and President Biden,as an example.3 The CHIPS and Science Act:A“China Competition Bill”of Domestic-Focused ProvisionsIn mid-and late-July,2022,it became clear that the reconciliation process of the

62、Senates USICA and the Houses America COMPETES Act commonly referred to as the“China competition bills”remained unfruitful despite the gradual approach of the midterm election and repeated urging from congressional leadership,Commerce officials and the American business community.5 On July 27,2022,th

63、e Senate proposed the CHIPS and Science Act(also known as the CHIPS for America Act of 2022 or the CHIPS-Plus Act).Containing only the semiconductor and research provisions of the competition bill,the CHIPS and Science Act would authorize$52.7 funding to incentivize semiconductor manufacturing and i

64、nnovation in the United States and provide various government support for research and innovation in the United States.6 The House passed the Act the next day,and U.S.President Joe Biden signed the Act into law on August 9,2022.The provisions of the CHIPS and Science Act can be essentially traced ba

65、ck to four bills:The CHIPS Act of 2021,which became law on January 1,2021 to stimulate U.S.semiconductor manufacturing but received no funding until the passage of the CHIPS and Science Act;the National Science Foundation for the Future Act and Department of Energy Science for the Future Act,which a

66、im to enhance U.S.research and innovation House of Dragonslayers6and passed the House on June 28,2021,and the Endless Frontier Act,a Senate-proposed equivalent intending to address the same problem.All the aforementioned bills address legitimate concerns and challenges for U.S.economy and innovation

67、,but none of these issues whether its the offshoring of semiconductor manufacturing to China or the need to strengthen U.S.R&D was directly associated with China.Regardless,the combined package of the bills(i.e.USICA and AmCOM)was quickly framed as a“China competition bill”and“a comprehensive packag

68、e”to compete with China and counter Chinas rise.7 This narrative has limited the possible scope of policy action and made it difficult to fully address the needs to build strength from home and revitalize the American manufacturing industry.On August 9,2022,U.S.President Joe Biden signed into law“Th

69、e CHIPS and Science Act of 2022.”(Source:The White House,Public Domain)When the Endless Frontier Act,the first version of the research and innovation bills,was first introduced in the House in March,2021,the sponsors of the bill made it clear that they aim to enhance American economic and scientific

70、 competitiveness,bearing in mind both domestic societal challenges as well as the United States global leadership in technology and innovation.8 As the White House later details,the competition bill“aligned with the Presidents vision to enhance American economic and scientific competitiveness;build

71、a stronger,more diverse,and more inclusive innovation ecosystem;and invest in strengthening critical supply chains,our domestic industrial base,and regional economic growth and development.”9Meanwhile,the business community in the United States has long called for government incentives to address th

72、e global semiconductor shortage crisis and to support the 1.From Addressing the Semiconductor Shortage to Increasing U.S.Competitiveness:Policy Concerns Behind the CHIPS and Science Act7November 2022domestic manufacturing sector.With open letters from the semiconductor industry,the manufacturer asso

73、ciation and big tech companies,the bill is also a response to these needs and an expansion of earlier efforts to support U.S.industries.1.1 Background Legislation:Chips crisis 2020 and CHIPS Act 2021With the outbreak of a global semiconductor crisis in early 2020,the bipartisan legislative effort to

74、 stimulate U.S.chip manufacturing began as early as June,2020.Simultaneously introduced by Senator Mark R.Warner,Senator John Cornyn,U.S.Representative Doris Matsui and then House Foreign Affairs Committee Ranking Member Michael McCaul,the original version of Creating Helpful Incentives to Produce S

75、emiconductors Act(CHIPS for America Act 2021,or CHIPS Act 2021)would,among others,create a 40%refundable investment tax credit for qualified semiconductor equipment or semiconductor manufacturing facility investment,a$10 billion federal funding that matches state and local incentives offered to the

76、building of new semiconductor foundry with advanced manufacturing capabilities and new R&D funding streams to enhance government-supported R&D related to semiconductor technology.10 The Semiconductor Industry Association,a strong supporter of USICA and the CHIPS and Science Act,applauded the introdu

77、ction of the bill.11On January 1,2021,a significantly revised version of the CHIPS Act 2021 became law as part of the National Defense Authorization Act for Fiscal Year 2021(NDAA 2021).12 Department of Commerce:Incentivizes investment in U.S.semiconductor manufacturing and R&D by funding U.S.entitie

78、s that provide equipment or materials for,or engage in semiconductor fabrication,assembly,testing,advanced packaging and R&D.National Science and Technology Council:Promotes U.S.leadership in microelectronics technology innovation by funding national technology center and public-private partnership

79、programs that support advanced microelectronics R&D and the development of semiconductor manufacturing capabilities.Department of Defense:Ensures development and production capability of microelectronics that are critical to national security through the funding of public-private partnership and con

80、sortia of private companies.Department of Treasury:Enhances the security of semiconductor supply chains by establishing and maintaining a common funding mechanism,in coordination with trusted foreign partners,to support the development and adoption of secure semiconductor supply chains.BOX 1:Creatin

81、g Helpful Incentives to Produce Semiconductors Act(CHIPS for America Act 2021)Summary of the Provisions21 House of Dragonslayers8The final CHIPS Act 2021 would direct the Department of Commerce,the National Science and Technology Council,the Department of Defense and the Department of Treasury to es

82、tablish respective programs in support of U.S.semiconductor manufacturing,R&D and supply chain security.13 However,NDAA 2021 did not provide a funding mechanism for these programs.Later lobbying and legislative efforts have thus aimed at providing funding for the CHIPS 2021 programs through the comp

83、etition bills.Additionally,some original provisions that were excluded from the CHIPS Act 2021,e.g.the investment tax credit and the R&D funding,eventually found its way back into the CHIPS and Science Act,albeit in revised and trimmed forms.1.2 Supporting U.S.Chips and Manufacturing:Calls from the

84、American Business CommunityAs a cross-section of business groups continued to feel the impacts of a lasting global semiconductor crisis,the business community started to urge the 117th Congress to provide funding for the CHIPS 2021 programs.For the coalition led by the U.S.Chamber of Commerce and th

85、e alliance featuring Apple,Amazon,AT&T,Dell,General Electric,Google,HP,Microsoft,a bill to stimulate the U.S.semiconductor industry would not only address long-term chip shortage but also“strengthen U.S.economy,national security,and supply chain resilience.”14 Meanwhile,Lockheed Martin has highlight

86、ed the national security aspect of the issue,arguing that a robust supply of chips“is essential both to national security and to the health of the defense industrial base and the aerospace industry as a whole.”15Similarly,the semiconductor industry argued for government support not only to address t

87、he semiconductor shortage,but also for the long-term development and competitiveness of domestic semiconductor manufacturing.Semiconductor businesses,most notably Intel and Semiconductor Industry Association(SIA),have argued that the U.S.share in semiconductor manufacturing has declined because auth

88、orities in Taiwan,Korea and China are offering substantial manufacturing incentives to attract semiconductor manufacturing into Asia.16 Accordingly,Intel,SIA and Information Technology Industry Council(ITI)have constantly called for matching,or at least substantial incentives from the U.S.government

89、 to“level the playing field”or catch up with governments of“global competitors.”17 The end goal,according to ITIs policy priorities,is to ensure U.S.competitiveness for attracting semiconductor investment“vis-vis global partners and competitors who have robust incentives of their own.”18The National

90、 Association of Manufacturers(NAM)expanded the above-mentioned reasoning to the manufacturing sector in general.According to NAM,it is imperative that the federal government support the domestic manufacturing sector“in the face of increased global competition for industrial investment.”19 Among the

91、manufacturers six top choices of new legislative provisions(see Table 2),the CHIPS and Science Act directly addressed two.9November 2022Notably,neither the CHIPS Act 2021 nor the business community included China or the direct countering of China as part of their policy needs and concerns.Even when

92、mainland China was mentioned,it was joined by other U.S.allies and partners who have a strong semiconductor industry.Together,these Asian authorities were used as a benchmark to call for and validate the increase of U.S.government incentives but the business community by no means suggested or suppor

93、ted countering measures directly aimed at these“global competitors”in semiconductor manufacturing.Meanwhile,the National Association of Manufacturers finalized the above-mentioned statement in July,2021,at a time when relevant legislations were already by default“China competition bills.”Even then,m

94、ost,if not all of NAMs top choices were domestic-oriented,with no mention of issues such as tariff,market access or countervailing duties,let alone those directed at China.TABLE 2:Manufactuers Top Choice of Provisions to be Included in a China Competition Legislation22#ProvisionStatus1Addressing por

95、t congestion and competition issues in ocean shippingThe Ocean Shipping Reform Act,which had been included in the America COMPETES Act,passed into law separately.2Eliminating ill-conceived labor provisions that facilitate unionization campaignsPer the White House,the CHIPS and Science Act support“go

96、od-paying,union construction jobs”by requiring Davis-Bacon prevailing wage rates for facilities built with CHIPS funding.23 3Strengthening U.S.leadership in energy innovation and competitivenessThe CHIPS and Science Act authorizes$67.9 billion over five years,for the Department of Energy,mostly for

97、research and research infrastructure.4Funding to increase domestic semiconductor production capacityThe CHIPS and Science Act authorizes$52.7 billion over 5 years to incentives U.S.semiconductor innovation and production.5Investments to support the critical minerals supply chainNot addressed in the

98、CHIPS and Science Act.6Full tax deduction for research expensesTax reduction for all research expenses is not addressed in the CHIPS and Science Act.House of Dragonslayers101.3 Supporting U.S.Chips and Manufacturing:Calls from the American Business CommunityWhile both the White House and Congress sh

99、are a common understanding to promote U.S.economic and scientific competitiveness through the competition bills,a deeper read into the official documents reveals that at least between the White House and the House Democratic leadership,the nuances and primary focus of their respective policy focus a

100、nd objectives vary.Below is a comparison based on the White Houses August 9 fact sheet and the House Democratic leaderships fact sheet,both concerning the CHIPS and Science Act:20 TABLE 3:Policy Purpose and Objective of the House Democratic Leadership and the White House Concerning the Competition B

101、ill24 The White HouseHouse Democratic LeadershipEmphasis of Policy Purpose25“Keeping the United States the leader in the industries of tomorrow.”“Regaining U.S.strength and reducing long-term supply chain vulnerabilities in critical areas.”The industries of tomorrow contain nanotechnology,clean ener

102、gy,quantum computing,and artificial intelligence.The critical areas include“advanced manufacturing,next-generation communications,computer hardware,and pharmaceuticals.”Highlighted policy objective of the bill“Advance U.S.global leadership in the technologies of the future.”Develop“use-inspired and

103、translational research”and“technology-based solutions to national,societal or geostrategic challenges.”Shared technology and areas of focus Artificial intelligence Quantum computing Advanced communications technology/6G Advanced energy science Biotechnology House-unique technology and areas of focus

104、N/A Biological and environmental research Sustainable chemistry Food-energy-water system Precision agricultureOther policy objectives mentioned Investment in the workforce Catalyze regional economic growth and development Research security11November 2022This difference in focus parallels the differe

105、nt approach between the older competition bill proposals,namely,the Senates USICA and the Houses America COMPETES Act.While both competition bills aim at promoting research and development,USICA focuses on enhancing U.S.competitiveness by increasing U.S.capacities in key cutting-edge technologies mu

106、ch alike the White Houses focus on“U.S.global leadership in the technologies of the future,”while AmCOM emphasizes“collaborative,purpose-driven R&D to address key societal challenges.”The parallel between the White House fact sheet and USICA might explain why the Senate is silent on its interpretati

107、on and vision for the CHIPS and Science Act,since it likely resembles that of the White House.TABLE 4:Research and Innovation Provisions of USICA and America COMPETES Act28 USICA(as of November,2021)America COMPETES Act(as of February,2022)General PurposeEnhance U.S.competitiveness and leadership in

108、 innovation and basic and applied research,especially in STEMAccelerate collaborative,purpose-driven R&D to address key societal challengesFocus AreasCapacities in key technology including:AI Semiconductor and advanced computing Quantum information technology Robotics,automation,and advanced manufac

109、turing Advanced communications technology and immersive technology Data storage,data management and cybersecurity Batteries and other advanced energy and industrial efficiency technologies Advanced materials scienceSolutions to societal challenges including:Climate change and environmental sustainab

110、ility Global competitiveness Cybersecurity National security STEM education and workforce Social and economic inequalityOther Supports the building of a STEM workforce as well as scholarship on the listed key technologies Separate funding for the Department of Energy to conduct R&D and address energ

111、y-related supply chain activities within the key technology focus areas Builds regional capacity and reduce geographic disparity(avoid undue geographic concentration of research and education funding)Supports all levels of STEM education Separate support to Department of Energy for research on energ

112、y storage,energy transition(solar,hydrogen,fusion,carbon removal,bioenergy),and critical materials Supports National Institute of Standards and Technology in research and standards development of cutting-edge technologies,including quantum information science,artificial intelligence,cybersecurity,pr

113、ivacy,engineering biology,advanced communications technologies,semiconductorsHouse of Dragonslayers12The actual texts of the final CHIPS and Science Act takes a compromised approach.The National Science Foundation(NSF)the agency that receives the majority of the research and innovation funding is in

114、structed to use the funds to both address the societal challenges listed in AmCOM and advance the key technology focus areas as listed in USICA.26 However,the challenges and the technology focus areas do not have to directly align,and the NSF is instructed to review and adjust the list of challenges

115、 and technologies annually,in consultation with an advisory committee composed of stakeholders as well as industrial and academic experts.27 As such,the NSF has broad authority to set its investment priorities,either through adjusting the list of challenges and technologies of focus,or through decid

116、ing the specific projects to support.Compared to statements and concerns by the business community,the policy purposes of the White House and Congress show a slightly more outward approach the White House aims to ensure U.S.global leadership in future industries and technologies,while the House ment

117、ions supply chain vulnerabilities concerns which could have bilateral and multilateral implications.Nevertheless,both purposes landed on primarily domestic measures,i.e.on the building of U.S.capabilities.Even in areas where emphases vary,the difference centers around whether to focus on technology

118、or societal challenges and thus tightly corresponds to the building of domestic capabilities.Indeed,in the White House fact sheet,China appeared only twice once in the title of the fact sheet and once when the fact sheet highlights a narrow guardrail to prevent CHIPS funding from being used in China

119、.As the next section will reveal,this trend continues in the actual texts and provisions of the CHIPS and Science Act.2.Stimulating Chips and Science:A Summary of the Provisions2.1 Funding to Support Semiconductor Manufacturing and InnovationThe previous CHIPS Act of 2021 passed as part of the Natio

120、nal Defense Authorization Act for Fiscal Year 2021(NDAA 2021)authorizes the Department of Commerce,Department of Defense and the Department of Treasury to establish respective programs to stimulate the semiconductor industry.The CHIPS and Science Act provides funding for those programs.Specifically,

121、the bill authorizes:A total of$39 billion,from 2022 to 2026,to the Department of Commerce for stimulating semiconductor manufacturing,A total of$11 billion,from 2022 to 2026 to the Department of Commerce for research and workforce development,A total of$2 billion,from 2023 to 2027,to the Department

122、of Defense for lab-to-fab transition of semiconductor technology and DOD-unique applications,13November 2022 A total of$500 million,from 2023 to 2027,to the Department of the Treasury to support relevant agencies in international information and communications technology security and semiconductor s

123、upply chain activities A total of$200 million,from 2023 to 2027,to the Department of the Treasury to advance development of domestic semiconductor workforce,training and education.29Within the$39 billion of CHIPS funds for stimulating semiconductor manufacturing,$2 billion should be set aside to inc

124、entivize manufacturing of mature technology nodes.30 The White House and Senator Mark Kelly,a chief negotiator of the bill,both implied that this provision has in mind the automobile industry,among others,but the Department of Commerce has relative discretion in distributing these funds.315TABLE 5:A

125、mount of Funding Authorized by the Semiconductor Division of the CHIPS and Science Act47 Fiscal YearManufacturing and R&D incentive(Commerce)48 R&D and workforce development(Commerce)DOD-unique applications and lab-to-fab transition of technology(Defense)49 International telecommunications technolog

126、y security and semiconductor supply chain activities(Through Treasury to State and other agencies)Workforce Development and Education(Treasury)2022$19 billion$5 billionN/AN/AN/A2023$5 billion$2 billion$400 million$100 million$25 million2024$5 billion$1.3 billion$400 million$100 million$25 million202

127、5$5 billion$1.1 billion$400 million$100 million$50 million2026$5 billion$1.6 billion50$400 million$100 million$50 million2027N/AN/A$400 million$100 million$50 millionTotal$39 billion$11 billion$2 billion$500 million$200 millionTotal funding overall:$52.7 billionIn addition to the abovementioned fund

128、ings,the CHIPS and Science Act also establishes a 25%tax credit for investment in semiconductor manufacturing,if the manufacturing facilities will enter into service in or after 2023 and if construction begins before 2027.32 While not included in the previous versions of either USICA or AmCOM,this p

129、rovision is a qualified House of Dragonslayers14version of the Facilitating American-Built Semiconductors Act(FABS Act)and reflects the approach of the originally proposed draft of the CHIPS Act 2021.Furthermore,the Act also prohibits recipients of the CHIPS funds from expanding semiconductor manufa

130、cturing capacity in China and“any other foreign country of concern”within 10 years since they receive the funding.“Legacy semiconductor”defined as 28 nanometer generation or older but subject to further modification by the Secretary of Commerce,are excluded from this prohibition.33 The act also proh

131、ibits recipients from using the CHIPS funds for stock buyback and dividends.34 Finally,the Act clarifies that upstream suppliers and nonprofits are eligible for CHIPS funds and specifies the goal of the programs as promoting U.S.“economic and national security interests.”35In addition to the semicon

132、ductor industry,the Act appropriates$1.5 billion to advance“open architecture,software-based wireless technologies”by funding“innovative,leap-ahead technologies in the U.S.mobile broadband market.”362.2 A Wide Range for Support for Advanced Research and Innovation BasisUnder the CHIPS and Science Ac

133、t,a total of$169.9 billion are authorized over the next five years to support research projects in a number of agencies and departments.37 Specifically,the National Science Foundation(NSF)will receive$81 billion in funding to advance research and innovation,including through strengthening research i

134、nfrastructure,promoting STEM education and training and expanding research programs and projects.38 The bulk of the funding will go to a new Directorate for Technology,Innovation,and Partnerships within the NSF to address societal challenges and advance key technology focus areas.The initial NSF foc

135、us areas are as follows:Societal challenges:National security Note:unlike AmCOM,the CHIPS and Science Act lists“national security”as the first of the societal challenges Manufacturing and industrial productivity Workforce development and skills gaps Climate change and environmental sustainability.In

136、equitable access to education,opportunity or other services.Key technology focus:AI Semiconductor and advanced computing Quantum information technology Natural disaster prevention or mitigation Note:not included in USICAs list Robotics,automation,and advanced manufacturing Advanced communications te

137、chnology and immersive technology15November 2022 Biotechnology Note:not included in USICAs list Data storage,data management and cybersecurity Batteries and other advanced energy and industrial efficiency technologies Advanced materials science39The NSF is instructed to review and adjust the list of

138、 challenges and technologies annually,in consultation with an advisory committee composed of stakeholders as well as industrial and academic experts.40 The challenges and the technology focus areas do not have to directly align.Although the NSF has broad discretion in distributing the funds,it is al

139、so instructed to conduct a review of its progress in key technology focus areas and challenges no later than five years after the enactment of the CHIPS and Science Act.41 The review should cover,among others,the relative balance in leadership between the United States,allied and partner countries a

140、nd China.The Department of Energy receives the second-most funding under the research and innovation provisions a total of$67.9 billion over five years.The bulk of this funding will go to the Department of Energys Office of Science,supporting its seven core research programs,i.e.Advanced Scientific

141、Computing Research,Basic Energy Sciences,Biological and Environmental Research,Fusion Energy Sciences,High Energy Physics,Nuclear Physics,Isotope R&D and production.According to highlights summarized by the House Science Committee,the funding aims at supporting the fight against climate change as we

142、ll as research in emerging areas,including quantum information science and artificial intelligence,among others.42The Act also provides$10 billion to the National Institute for Standards and Technology(NIST)to support the development of standards for emerging technologies and to provide further supp

143、ort and incentives to U.S.manufacturing.43Finally,the Department of Commerce is appropriated with$10 billion over 5 years to build regional technology hubs to expand innovation capacity in areas that are not leading technology centers.44 In accordance with the general goal to enhance innovative capa

144、city and economic growth among all regions,the NSF is also instructed to build Regional Innovation Engines,with a special consideration for rural regions.The Regional Innovation Engines shall work in collaboration with the Department of Commerces regional technology hubs as well as relevant federal

145、agencies,educational institutions and the private sector.2.3 Narrow Guardrails and Old Grievances:CHIPS+Provisions that Directly Concerns ChinaAlthough the competition bill is often described as an effort to enhance U.S.competitiveness vis-vis China,a limited number of provisions in the 1034-page bi

146、ll directly discuss China.House of Dragonslayers16As were previously mentioned,the CHIPS and Science Act prohibits recipients of the CHIPS funds from expanding semiconductor manufacturing capacity in China except for older-generation“legacy semiconductor.”In addition,Chinese companies are not allowe

147、d to participate in the NISTs Manufacturing USA Program without a waiver,and the NSF shall not provide funding to programs and projects that involve the Confucius Institute.45The CHIPS and Science Act,as is signed by U.S.President Joe Biden.(Source:The White House,Public Domain)As can be seen from t

148、he summary of the CHIPS and Science Act provisions,the bill primarily addresses U.S.domestic policy specifically,on the development of U.S.semiconductor manufacturing and on government supported R&D efforts in foundational and cutting-edge technologies.Although“China”was not entirely absent from the

149、 bill,it was neither a notable component of the policy concerns that the bill aims to address,nor a prevailing factor in the actual content of the bill.That being said,to allocate enough resources and to overcome partisan differences on the legislation,the China factor was used to rally enough polit

150、ical support especially to win over the hearts and minds of the partisan Republican.However,by doing so,the original and concrete aim of the package namely,macroeconomic-and innovation-oriented 3.Inclusion of the“China”Factor:A Shortcut to Political Support Turning to a Long Journey of Law-makingFur

151、thermore,the Biden administration is also instructed to develop a national strategy in improving the U.S.technological competitiveness in support of the U.S.national security strategy and the national strategy must include an assessment of the extent to which intellectual property developed with fed

152、eral defense funding is being used by China-related entities.46 The NSF is also instructed to review its progress including by comparing the“relative balance in leadership”between the United States,China and others in key technology focus areas and in addressing societal challenges.In sum,the“China”

153、provisions of the CHIPS and Science Act can be generally summarized into three categories:First,“guardrail”provisions that prevent the CHIPS and Science Act funding from benefitting China and at least part of the Chinese entities;second,a provision that address,in passing,the conventional grievance

154、of intellectual property rights;and third,a provision that use China as a benchmark to assess U.S.competitiveness much alike the approach of the business community as they promote for government incentive measures to support U.S.domestic industries.17November 2022stimulation was plagued by the hyped

155、 hysteric fear of China and the overemphasis of national security concerns.Meanwhile,the China factor also became a convenient excuse for any party to lobby or advocate for its own interests that were not supposed to be directly associated with China.This created an intricate phenomenon that during

156、the lobbying process of the CHIPS and Science Act,parties that were both for the bill and against the bill mentioned U.S.strategic competition with China repeatedly,yet in the full body of the legislation,China was only present in five provisions three guardrail ones that prohibit CHIPS and Science

157、Act funding from going to China,one that mentions the traditional grievance of intellectual property rights and one that uses China as a benchmark to assess U.S.competitiveness.Just as the introduction of the China factor helped ensure support for the bill,it also significantly extended the legislat

158、ive process.As mentioned earlier,legislative efforts to address the semiconductor shortage crisis started even before the 117th Congress,in July 2020,and resulted only in a temporary conclusion but hardly a solution at the beginning of the 117th Congress.Meanwhile,the initial versions of the competi

159、tion bills the Endless Frontier Act,the National Science Foundation for the Future Act and Department of Energy Science for the Future Act passed their respective chambers around June,2021.At the time,there was both bipartisan and industrial support to pass a bill to both fund the CHIPS Act 2021 and

160、 increase support for U.S.research and innovation,but the House and the Senate needed to reconcile their different approach with regard to the research and innovation provisions(see Table 4 and discussions above).Nevertheless,as the semiconductor and the research provisions became combined into a Ch

161、ina competition bill,compromises and negotiations with the Republican Senators also resulted in the inclusion of more provisions in USICA most notably,the reinstatement of Section 301 tariff exclusion which incited controversy.An even more extreme case occurred with the Houses America COMPETES Act(A

162、mCOM).AmCOM passed the House on February 4,2022,after at least seven months of debates,negotiations and compromises.As the Houses established proposal for the competition bill,the package not only proposed to expand the Trade Adjustment Assistance program and provisions on global climate partnership

163、 both partisan issues that most Republican lawmakers opposed,but it also incorporated a number of other bills that were labeled as important measures to counter China but strongly opposed by several major business groups,mostly because the“countermeasures”had excessively sweeping coverages or aggres

164、sive approach compared to the policy goals they proposed to secure(see Table 6).The concept of a China competition bill likely made it difficult to exclude these controversial and,at times,aggressive,bills from the package.And while the inclusion of the bills was likely vital to securing some politi

165、cal and legislative support for the competition bill,controversy surrounding these controversial bills added a multitude of new layers to House of Dragonslayers18the legislative discussion,making any reconciliation effort cumbersome,time-consuming and nearly impossible.By mid-to late-July,2022,Congr

166、ess had repeatedly passed estimated and planned deadlines for passing the China competition bill,and congressional leaders previously vowed to pass the competition bill in July.51 On July 27,2022,the Senate proposed the CHIPS and Science Act,which contains only the semiconductor and research provisi

167、ons of the competition bill with the exception of three additional China guardrail provisions and the necessary compromise between the Senate and the House approach,the CHIPS and Science Act closely resembles corresponding provisions in the National Science Foundation for the Future Act and Departme

168、nt of Energy Science for the Future Act,and the Endless Frontier Act,all passed more than a year ago and proposed even earlier.TABLE 6:Select Provisions of Controversy in USICA and AmCOM52 ProvisionsIn:Opposition and DisagreementReinstate the exclusion of Section 301 tariff on Chinese goodsUSICAOppo

169、sed by AFL-CIO;supported by Senate Republicans U.S.Chamber of Commerce.Lawmakers are divided on the issue.Trade Adjustment Assistance(TAA)AmCOMSupported by labor groups but opposed by Republican lawmakers.Senator Rob Portman suggested that TAA might pass if accompanied by the Trade Promotion Authori

170、ty(TPA),but the Biden administration showed little interest in seeking TPA.Outbound investment screeningAmCOMOpposed by U.S.Chamber of Commerce,the U.S.-China Business Council and other business groups.De minimis tariff reformAmCOMOpposed by U.S.Chamber of Commerce and National Foreign Trade Council

171、.AD/CVD reform(“Eliminating Global Market Distortions To Protect American Jobs Act of 2021”)AmCOMOpposed by U.S.Chamber of Commerce,National Foreign Trade Council,Autos Drive America;supported by American Iron and Steel Institute,Alliance for American Manufacturing and American Institute of Steel Co

172、nstruction.Global climate partnershipAmCOMOpposed by Senate minority leader Mitch McConnell and criticized by House Republicans.19November 2022The complication of excess domestic lobbying,accompanied by the further deterioration of the U.S.-China relations on the international stage,has further rais

173、ed unnecessary alarm on the Chinese side as the Chinese government interprets lobbying and political messages from the U.S.domestic discussions as proof of U.S.intention to further contain or even undermine Chinas rise.Since the Senate introduced USICA as a China competition bill,the Chinese governm

174、ent has been critical of the competition bill.On April 22,2021,after the Senate Committee on Foreign Relations passed USICA,the Foreign Affairs Committee of Chinas National Peoples Congress criticized the bill for“consisting of Cold War mentality and ideological biases,slandering Chinas development

175、strategy and domestic and foreign policies,and grossly interfering with Chinas internal affairs.”53 The statement specified,however,that“even if the United States and China would compete in certain areas,the competition should be fair,rule-based,benign and manageable,”and primarily denounced provisi

176、ons that concern Taiwan,Xinjiang and Hong Kong.Similarly,on November 30,2021,Chinas Ministry of Foreign Affairs called for U.S.and Chinese businesses to“cease undermining and sanctioning Chinese companies,persuade Congress against passing China-related legislations such as the Innovation and Competi

177、tion Act,and establish a fair area for U.S.and Chinese companies”aiming at benign competition.54As lobbying and legislative efforts for the China competition bill continued,Chinas position has also hardened and when the U.S.Congress passed the CHIPS and Science Act,the critical attitude extended to

178、the trimmed competition bill likely also due to the explicit“China guardrail provisions”that were added last-minute by China hawks.Following the congressional passage of the CHIPS and Science Act,Chinas Commerce Ministry said that the act“contains provisions that restrict relevant companies normal e

179、conomic,trade and investment activities in China,which is discriminatory and will distort the global semiconductor supply chain and disrupt international trade.”55 The ministry urged the U.S.to implement the bill in accordance with relevant WTO rules and principles,maintain the security and stabilit

180、y of global industrial and supply chains and avoid fragmentation.56 China“firmly opposes”the bill and will“take forceful measures to safeguard its legitimate rights and interests when necessary,”according to the ministry.57 Following that line,Chinese Foreign Ministry spokesperson Zhao Lijian said t

181、hat the bill“is purportedly aimed at bolstering the competitive edge of the USs sci-tech and chip industries”but“certain provisions in the act restrain normal sci-tech cooperation between China and the US.”58 Meanwhile,Chinese Foreign Ministry spokesperson Wang Wenbin called the bill“an example of e

182、conomic coercion by the U.S.,”while emphasizing that“decoupling will harm both itself and others.”59 Restrictions and suppression will not stop the pace of Chinas technological and industrial development,Wang added.4.When Lobbying Rhetoric Leads to Diplomatic Response:Chinese Criticism of the China

183、Competition BillHouse of Dragonslayers20As China became increasingly firm in its criticism and denouncement of the China competition bill,the U.S.lawmakers will interpret Chinas diplomatic pushback in two ways:First,they see China becoming increasingly assertive and intending to interfere with U.S.d

184、omestic politics,which deepens the perception of the China threat especially during election seasons.Second,Chinas strong opposition of the CHIPS Act makes lawmakers,especially the China hawks,believe that technological self-reliance and decoupling hurt Chinas interests,which means there will be eve

185、n more incentives to push for further aggressive legislation to deepen U.S.-China trade and tech decoupling,or even escalating U.S.-China competition in general.Some of those can be observed from several China bills that are currently under discussion in the 117th Congress and could potentially carr

186、y over to the 118th Congress.First,looking at“the impact of outbound U.S.investment flows that could circumvent the spirit of export controls or otherwise enhance the technological capacity of U.S.competitors in ways that harm U.S.national security,”60 several lawmakers and congressional leaders hav

187、e continued to push for the establishment of an outbound investment screening mechanism,ideally through the enactment of a legislation.The current legislative proposal,the National Critical Capabilities Defense Act,would establish an interagency committee to review and potentially suspend outbound i

188、nvestment activities that involve nations of concerns primarily China and“critical national capability.”Business communities and industrial stakeholders have criticized the current bill for having an overly expansive coverage,especially as the bill leaves“critical national capability”undefined and u

189、p to the interpretation of the interagency committee.61Second,two bills have been proposed to reform tariff and trade enforcement tools in an effort to counter China.Aiming at combating unfair trade practices“emanating from Chinese Foreign Ministry spokesperson Zhao Lijian at a press conference in B

190、eijing on July 28,2022.(Source:Ministry of Foreign Affairs of the Peoples Republic of China,Public Domain)A Free Fall Into China Threat and Decoupling?21November 2022China,”the Eliminating Global Market Distortions To Protect American Jobs Act of 2021 would strengthen and expand antidumping and coun

191、tervailing duty measures,including by extending countervailing duties to cover“cross-border subsidy”resulting from the Belt and Road Initiative and similar practices.Meanwhile,the Import Security and Fairness Act would prohibit the de minimis exemption the practice to not charge tariffs on goods val

192、ued below$800 for imports from China.While some identified the de minimis reform as a needed change to address the increase of import packages under the de minimis level,partly attributed to the growing cross-border e-commerce,others argued that the reform would lead to significant administrative co

193、sts far surpassing possible benefits.62Third,Title V of the Taiwan Policy Act currently under discussion in the U.S.Senate,aims at“enhanced development and economic cooperation between the United States and Taiwan.”The provisions emphasized Taiwans role as a reliable partner“critical for diversifyin

194、g our Nations supply chains,”for reducing U.S.reliance on China and highlighted the U.S.-Taiwan Economic Prosperity Partnership Dialogue as well as its coverage over issues such as 5G networks and telecommunications security,supply chains resiliency,infrastructure cooperation,renewable energy,global

195、 health and science and technology.The bill further urged the administration to resume meetings under the United States and Taiwan Trade and Investment Framework Agreement with the goal to reach a bilateral trade agreement.From untraditional tariff measures such as the de minimis reform(namely,the I

196、mport Security and Fairness Act)and the introduction of new AD/CVD tools,to the unrelenting legislative push for an outbound investment screening mechanism(namely,the National Critical Capabilities Defense Act)despite pushback from the business community,the push to decouple U.S.-China trade and tec

197、hnology ties has continued and has expanded to new arenas,with the potential to impact an even broader range of industries,sectors and global actors.At the same time,corresponding tendencies can also be spotted in the debates and rhetoric surrounding the midterm elections,as candidates solidified a“

198、tough on China”consensus regardless of their party and grew increasingly hawkish at least in rhetoric against China.However,as was discussed,such political narrative and messaging now have implications beyond mere domestic politics and lobbying efforts.In a world where the China talks have translate

199、d into a continuing U.S.-China trade war,increasing tightening of technology control and decoupling,heightened legislative discussion and the domestically applauded enactment of a China competition bill and Pelosis visit to Taiwan,it will be especially difficult if at all possible to convince China

200、that the rhetoric does not reflect U.S.policy intent and strategic planning to contain China.As Chinas responses and pushbacks will only intensify the perception of China threat and lead to further efforts in decoupling,the developments could well translate into a self-fulfilling prophecy,where Cong

201、ress is eventually bound to act just as hawkish as the political talks of the lawmakers.The next section will look into this issue by evaluating the current landscape of the midterm elections as related to the China issues.House of Dragonslayers22While the result of the upcoming U.S.midterm election

202、s rests on several polarizing domestic issues,when it comes to Congress approach to China,most candidates only differ in just how tough they think the U.S.ought to act towards Beijing.This crystalizing tough on China consensus between the two parties Congressional caucuses is quite well-founded elec

203、torally.Chinas unfavorability rating has drastically increased across party lines since the last U.S.midterm elections were held in 2018.According to a recent Pew poll,roughly 9 in 10 Americans(89%)consider China as an enemy or competitor while 67%feel cold towards China,a sentiment that has expande

204、d from 46%of the polled population in 2018.63Many candidates have talked tough in an attempt to court a voting public generally dissatisfied with the rise of China,but the lack of substantive debate regarding the relationship as well as the relative urgency of other issues has largely neutralized th

205、e China factor as an important distinguishing point between the two parties this November.Therefore,mentions of China in the midterm campaigns should be taken with a grain of salt Chinas salience electorally is largely a matter of rhetoric and bluster,while its real relevance as it relates to trade

206、policymaking has gone largely unmentioned this election season.That being said,Republicans have generally centered critique of China in their electoral rhetoric to a greater degree than Democrats this election season.As they are poised to overtake Democrats handedly in the House of Representativesan

207、d possibly in the Senate as well by a narrower marginwe can expect a slightly harder line on China to emerge on the Hill that could pressure President Biden for the remainder of his term.In practice,this rhetoric around China has not neatly coalesced around certain policies.Rather,Republicans have p

208、layed the China card in myriad ways:to signal ideological opposition to a strawman of Chinese communism,to pin blame on the President for In Summary:PART IIIRed Dragon or Red Herring?The China Factor in the U.S.Midterm Elections23November 2022perceived Chinese economic abuses,and to demonstrate thei

209、r willingness to commit military resources in a hypothetical conflict between China and U.S.partners in East Asia.In response,challengers have sought to paint their rivals as hypocrites by calling out their own ties to Chinese firms and call their loyalty into question further devolving the discours

210、e away from real discussions of China policy and towards personality contests.One such example occurred earlier this year in Pennsylvania,where the Republican primary candidate(now nominee)for Senate,Dr Mehmet Oz,squabbled with his challenger Dave McCormick over business dealings with Chinese health

211、 companies and hedge funds,respectively.64 While this episode was of electoral consequence when initially revealed,one should remember that both candidates positioned themselves as champions of America First policies and would likely have adopted similarly populist approaches towards China in office

212、.These rhetorical battles over general toughness also serve as an unfortunate distraction to practical questions of how candidates would seek to counter China through the technicalities of trade policy or investment controls.As such,the remainder of this section will attempt to separate political th

213、eater from the real implications that midterm contest will have vis-vis China.The two dynamics to be explored are the replacement of a few trade-focused incumbents by more protectionist newcomers,and the lack of a clear partisan binary on trade issues.Trade-focused incumbents or candidates more ofte

214、n than not are from manufacturing states in the revitalizing Rust Belt of the mid-Atlantic and Midwest and especially in the tech sector the Sun Belt along the nations southern coast and border.Therefore,the retiring of Senators Toomey and Portman from Pennsylvania and Ohio,respectively,are two pers

215、onnel changes that are bound to have a knock-on effect in how the Congressional parties will devise,amend,support,and move China-focused legislation through the next Congress.This is especially true given that the political climate has given way to more radical newcomers.American citizens voting in

216、an election.(Source:Getty Images,Royalty-Free)1.Departures of Veteran Trade-Focused Incumbents is Expected to Further Politicize Trade and Technology PolicymakingHouse of Dragonslayers24Senator Pat Toomey of Pennsylvania,while serving on the committees of Banking and Finance,consistently sought to p

217、revent trade barriers with China while addressing imbalances in the relationship by other means.For instance,he reached an agreement with labor-aligned Senator Sherrod Brown of Ohio on a bipartisan amendment to USICA that would have provided for sanctions on Chinese organizations involved in money l

218、aundering and intellectual property theft.65 However,Toomey ultimately opposed USICA for its government-directed spending that“imitates Chinese central planning.”66 Toomey also repeatedly called for Section 301 tariff relief and for a reform of the exclusion process to feature in the final China com

219、petition bill.67Toomeys departure has given way to a race in Pennsylvania between Republican television personality Dr.Mehmet Oz and Democratic Lieutenant Governor John Fetterman.Both candidates have vowed to get tough on China and preserve the states critical manufacturing sector.While Oz cultivate

220、d his anti-China bona fides during his primary race,he has come under fire in the general from Fetterman over his past partnership with a Chinese healthcare company and conspicuously rapid change in tone.Fetterman led solidly for much of the summer,but Oz is currently closing the gap,trailing Fetter

221、man by 3 points on aggregate this week.68Rob Portman,an incumbent Republican Senator from Ohio,is another trade focused incumbent that is leaving Congress at the end of his term.As a former House Member,U.S.Trade Representative,Director of the Office of Management and Budget and a Finance,Energy,and

222、 Foreign Affairs committee member in the Senate Rob Portman consistently opposed what he saw as unfair trade practices in Beijing,including a successful WTO suit in 2005 against Chinas improper duties on auto parts imported from America.Senator Pat Toomey of Pennsylvania speaking at the 2014 Conserv

223、ative Political Action Conference(CPAC)in National Harbor,Maryland.(Source:Flickr/Gage Skidmore,CC BY-SA 2.0)U.S.Senator Rob Portman speaking at the 2015 Defending the American Dream Summit at the Greater Columbus Convention Center in Columbus,Ohio.(Source:Flickr/Gage Skidmore,CC BY-SA 2.0)25Novembe

224、r 2022The term of Senator Portmans Democratic counterpart in the state of Ohio,Senator Sherrod Brown,will not end with this election cycle.Both Ohio senators,while divided by party lines,have worked together to protect their states manufacturing sector through measures like introducing legislation t

225、o strengthen trade remedy laws last year and,more recently,jointly urging President Biden to maintain Section 301 tariffs on Chinese goods.69 Brown has not ruled out running for re-election to the Senate come 2024.The race for Portmans open seat is between Republican author and commentator J.D.Vance

226、 and long-time Democratic House member Tim Ryan.Vance is a Trump-style populist who has aligned himself with the former Presidents rhetoric on China.Representative Ryan,while having deep roots in organized labor,has also positioned himself as a conservative-friendly candidate saying he“agreed”with T

227、rump on trade during his administration while the then-venture capitalist Vance was touting the importance of free-trade agreements at the expense of local manufacturing jobs.70 Vance is currently pulling away from Ryan in the polls,leading this week by 4 points on aggregate.71The replacement of one

228、 free trade advocate and one trade focused centrist with two more protectionist minded candidates will likely have a pronounced effect on increasing the polarization of the next Congress on issues of trade.The loss of these key individuals,with decades of experience in the technicalities of trade po

229、licy,could give way to more politically(as opposed to technocratically)motivated proposals,a dynamic which is likely to be even more pronounced if one or both chambers of Congress flip to the Republican side.Congress could become a source of less reasonable policy entrepreneurship,with measures desi

230、gned moreso to challenge Bidens trade agenda than to supplement U.S.strategy towards China at large.Rather than a strictly partisan divide on trade and technology relations with China in the leadup to the midterm elections,there exist parallel divides within each party between free trade advocates a

231、nd protectionists.The protectionist views in each party have emerged from similarly perceived issues in the American economy(such as the declining manufacturing sector)but they manifest in different ways due to the diverging voter bases of each party.Democrats who support more protectionist measures

232、 tend to have deeper ties to organized labor,while Democratic candidates with more suburban,upper-class bases of support tend to be less adamant about trade barriers.On the Republican side,support for protectionist measures tends to correlate with candidates who derive their support from the Trump b

233、ase,while candidates who rely more on connections to the business community and main street Republican voters tend to be more classically liberalfavoring free trade while countering China in other areas.2.Pro-Trade and Protectionist Voices Across the Map and on Both Sides of the Aisle:Breaking the P

234、artisan Binary House of Dragonslayers26As the aforementioned races in Ohio and Pennsylvania show us,there isnt always a clear binary in trade policy across party lines.In Ohio,for instance,the Democrat is outflanking the Republican and calling his Trumpian bona fides on China into question.However,t

235、he Wisconsin Senate race does display a more traditional partisan divide on trade policy between a pro-trade Republican and a pro-labor Democrat.Incumbent Senator Ron Johnson occupies the classical liberal wing of the GOP,consistently voting in favor of free trade agreements and tax cuts while oppos

236、ing tariffs and federal subsidies.This means that the Senator has voted against several measures designed to confront China economically,such as the United States Innovation and Competition Act(USICA)and the CHIPS and Science Act,as well as called on the USTR to review the tariff exclusion process a

237、nd reduce tariffs on China altogether.72However,the Senator has responded to claims that he is too soft on China by pointing to his support of measures to counter China in areas other than bilateral trade.For example,in March he introduced the Protect Americas Innovation and Economic Security from C

238、CP Act,which would reestablish an office in the Department of Justice to prevent Chinese spying against U.S.intellectual property and academic institutions.Senator Johnson also defended his vote against USICA by saying it did not adequately take China to task for stealing intellectual property and d

239、odging investigations into the origins of the COVID-19 pandemic.Johnson is currently leading slightly in the polls against his Democratic challenger,Lieutenant Governor Mandela Barnes.73 Barnes has contrasted himself with Johnson by specifically addressing the U.S.-China trade relationship.For examp

240、le,the Barnes campaign unveiled a plan to boost local manufacturing that calls for an end to“bad trade deals and anti-competitive practices”that he believes are stymieing Wisconsin businesses ability to compete with China.74Contrasting these cases reveals a vibrant spectrum of opinions on trade poli

241、cy towards China hidden beneath electoral rhetoric,but there is as much disagreement internal to each party as there is across party lines.This is another indication that the outcome of the midterms will likely politicize China policy to a greater degree:if the Democrats manage to hold the Senate,th

242、e party will likely continue to transition away from neoliberal trade policies and support the Biden teams trade agenda with more gusto;if the Republicans win control of one or both chambers,the partys America First and pro-trade wings will likely throw up challenges to Bidens trade agenda from both

243、 sides(through measures like the aforementioned National Critical Capabilities Defense Act,the Import Security and Fairness Act,and the Taiwan Policy Act).Either way,Congress transition after the midterms will likely result in a relative decrease in technocratic policy entrepreneurship in favor of f

244、urther buttressing or crippling the White Houses leading role in China-focused trade and technology policy.As to the specifics of how this will manifest in the 118th Congress,the next part of the report will go into more detail.27November 2022With the new congressional meeting starting in 2023,the 1

245、18th Congress will inherit both the deteriorating U.S.-China relations and the increasingly extreme rhetoric concerning China.As developments of the midterm election have shown,China is a major issue to address for both the Democratic and the Republican parties.As the presidential election becomes a

246、n increasingly hot domestic issue 2023-2024,the uncertainties of U.S.domestic politics will only increase.With Biden and Trump as the most likely finalists,the discussion over China and how the United States should continue to approach China will become the most dominant,if not only,issue on the can

247、didates foreign policy agenda.Indeed,this trend will likely occur even when the Ukraine crisis persists in the upcoming years.Biden has already stated clearly through both his own statement and his national security strategy that even when Russia brutally invaded Ukraine,the Biden administration sti

248、ll considers China as the only capable pacing challenge to the United States.75 While for Trump,his China policy was one of the biggest selling points of his foreign policy success during both his 2016 and 2020 campaign.With no doubt,should Trump become the Republican finalist of the presidential el

249、ection,he will continue his previous rhetoric and emphasize competition,if not confrontation,with China.As Biden and his Republican opponents are preparing and running for the 2024 presidential election,there will be more space for the 118th Congress to operate in 2023 and 2024.The 117th Congress ha

250、s already shown a passion and eagerness to take more responsibility and press the Biden administration to be more active in addressing various issues with regard to China.As such,the 118th Congress should also continue this trajectory and,with several legislative issues and bills already in the pipe

251、line,become more aggressive and more specific in dealing with many key issues concerning U.S.-China trade and technology engagement.In Summary:PART IVWhat to Look For in the 118th Congress?House of Dragonslayers28Accordingly,there could emerge an alarming tendency that as the U.S.-China relationship

252、s deteriorated and as hawkish China talks grew increasingly prevalent in the United States,legislative attention will turn to focus not on increasing U.S.competitiveness,but on containing and even hurting China.The 117th Congress has focused on playing the China card to ensure the passage of major p

253、ieces of legislation and has narrowly met the goal with the passage of the CHIPS and Science Act and Inflation Reduction Act in August.The 118th Congress,in turn,could have both the tendency and the opportunity to advance specific counter-China measures,potentially at the expense of benign competiti

254、on and further escalation of the U.S.-China bilateral relationship.U.S.President Joe Biden delivers his State of the Union address to a joint session of Congress on March 1,2022.(Source:The White House via Flickr)1.Key legislative issues and topics to keep an eye on1.1 Enhanced economic ties between

255、 U.S.and Taiwan,especially on semiconductorTaiwan is a complicated issue that concerns both strategic geopolitical interests,security/arms sale and technology and supply chain concerns.Due to the fact that the Biden administration has been moving very slowly with establishing proper bilateral trade

256、relationships between the United States and Taiwan,the 118th Congress will likely remain agitated on the issue and will seek to do more than just advocacy and open letters.So far,the top priority has remained on agricultural trade,an issue that is most relevant to the concerns of the voters.However,

257、should this issue be resolved,judging by what House Speaker Pelosi discussed with Taiwan Semiconductor Manufacturing Company(TSMC)executives,it is highly likely that the 118th Congress,regardless of whether the 29November 2022Democratic or the Republican party has majority,will still move forward to

258、 encourage Taiwan technology companies such as TSMC to invest in the United States as well as to increase bilateral trade and technology collaboration under bills such as the CHIPS and Science Act,other trade-and supply chain-related USICA provisions that could potentially become law,and the Taiwan

259、trade bill that could be potentially proposed.In this case,the Taiwan Policy Act,though being regarded by the Biden administration as extremely radical,can nevertheless work as a blueprint for the 118th Congress.Notably,the Senate version of the bill included only non-mandatory,“sense of Congress”nu

260、dges that call for resumed meetings under the United States and Taiwan Trade and Investment Framework Agreement with the goal to reach a bilateral trade agreement.With the division of trade and foreign affairs power between the President and Congress,it is unclear whether Congress will have the abil

261、ity or intent to impose an even stronger measure.Furthermore,future legislative efforts could allow for and encourage more input from local governments on semiconductor and technology investment,especially as the federal government gets distracted by domestic political events.As was discussed,the in

262、itial proposal for the CHIPS Act 2021,which was strongly supported by the Semiconductor Industry Association,would provide$10 billion federal funding to match state and local incentives offered to the building of new semiconductor foundry with advanced manufacturing capabilities.Accordingly,there is

263、 a strong likelihood that industrial incentive to amplify state and local support has remained.On the other hand,as the Commerce Department favors programs that have already secured state or local incentives when distributing the CHIPS and Science funding,76 the ties and connections between the indu

264、stry and state and local governments will only intensify through the implementation of the CHIPS and Science Act,leading to a firmer foundation for state and local governments to play a greater role,especially with the appropriate federal support and authorization.1.2 New arenas of technology and ca

265、pital controlAs several areas have become past issues and settled results,the 118th Congress will likely open up new arenas of U.S.-China tech and trade decoupling.Following trade decoupling led by the Section 301 tariffs as well as the tightened review of Chinese M&A activity and inward investment

266、through the enactment of the Foreign Investment Risk Review Modernization Act(FIRRMA),legislative and political interests have already moved to the supervision and control of outbound capital and technology.On the front of outbound investment screening,the current legislative proposal aims to establ

267、ish an interagency committee much alike the review mechanism for inbound foreign investment into the United States to review and potentially block activities that relate to China and“critical national capability.”With calls from both legislators and businesses House of Dragonslayers30to narrow the s

268、cope of the bill,however,questions abound on the particulars:How will“critical national capability”be defined?Which of the outbound investment activities will be deemed as harmful to U.S.interests and accordingly blocked?How broad would the committees review authority apply?And where should the peri

269、meter of extra-territorial application of jurisdiction reside,etc.?Even as some congressional leaders are calling for the White House to go ahead and establish an outbound investment screening mechanism amidst contemplation and debates among lawmakers,77 Congress will need to eventually present a de

270、finitive solution and clearly define the outer limits and specifics of the outbound investment review mechanism it wishes to establish.At the same time,the Bureau of Industry and Security(BIS)has been exploring multilateral and unilateral approaches to address congressional concerns,but hearing stat

271、ements and open letters have shown that many in Congress believe that the administration can do more,whether on the front of emerging and foundational technologies,other dual-use technologies,or beyond.As is shown by proposed bills such as National Critical Capabilities Defense Act(outbound investme

272、nt screening)and Import Security and Fairness Act(De Minimis Reform),Congress believes that the United States can and should do more to decouple U.S.-China trade and tech engagement in furtherance of U.S.interests.Alan Estevez,now head of the Bureau of Industry and Security(BIS),then Principal Deput

273、y Under Secretary of Defense,giving a speech in 2015.(Source:Marvin Lynchard/Department of Defense via Flickr,Public Domain)1.3 Old GrievancesCongress will continue to pursue old American grievances towards China.As the bilateral relationship deteriorates,and as rhetoric on China remains extreme,the

274、 118th Congress will only do more,not less,to call out China on issues like human rights,coercive actions and other national security related concerns.In this sense,the foreign strategy and international security provisions in USICA and the value-oriented statements in the America COMPETES Act will

275、likely reenter the legislative discussion and have the potential to appear in even more aggressive tones.31November 2022The outcome of the midterm will also slightly change the approach of the 118th Congress.While the tough on China tone will persist regardless of the midterm election outcomes,it is

276、 generally understood that if Republicans win a majority in the House which they are expected to they will become more aggressive and hostile towards China than their Democratic counterparts.The Republicans will likely put extra pressure on issues such as export control and form special committees a

277、nd groups directly aimed at addressing the China threat.Furthermore,Republican House Minority Leader Kevin McCarthy has stated that he would visit Taiwan if he becomes House Speaker should he follow through with his promises,78 this can likely mean increased tensions between the United States and Ch

278、ina,as well as accompanying legislative proposals on Taiwan.That being said,the specific stance of the 118th Congress will likely depend on developments in geopolitical events during its two years.Should the Taiwan Strait,the East China Sea and the South China Sea become hot issues,the attention wil

279、l likely shift from trade and technology to general strategic and security matters.While such a shift cannot stop the further deterioration of U.S.-China relationship,it might at least not accelerate the bilateral tech and trade decoupling.Be that as it may,the uncertainty created by security-relate

280、d tensions will nevertheless hurt the confidence of the global market.As the US-China Business Council has shown through its annual member survey,uncertainties around U.S.-China tensions and geopolitics have led a majority of the companies to enter a wait-and-see mode,while the increasing risk inclu

281、ding lost sales due to uncertainty of supply has already harmed U.S.companies and their confidence in future prospects,all the while the companies continue to recognize Chinas importance to their global competitiveness.79 Any actions to and turbulence in the U.S.-China relationships will likely have

282、 a garner impact in the long run.Additionally,the domestic partisanship in the United States is not likely to be solved under the 118th Congress.Therefore,playing the China card will still be the most convenient way to win over the hearts and minds of the U.S.voters.As such,the abovementioned impact

283、s of overly playing the China card be it the distorted policy intent,mismatched or inefficient solutions to inherently domestic problems,or the unnecessary deterioration of U.S.-China relationships can likely persist if unaddressed.2.Midterm Outcomes,Domestic Partisanship and Red-Blue Differences on

284、 ChinaHouse of Dragonslayers32Despite some rekindled hope that the U.S.-China relationship might have a more cooperative undertone under the Biden administration,power-based economic and political tensions between the United States and China have persisted in the past two years.As such,the 117th Con

285、gress will pass on to the 118th Congress a continuously deteriorating U.S.-China relationship,a legislative agenda that increasingly focused on China and growing suspicion of the Chinese government on U.S.legislative actions.As is shown by House Speaker Nancy Pelosis visit to Taiwan,it will be very

286、difficult to exclude Congress whether actions or statements of congressional leadership and prominent lawmakers from U.S.foreign policy.At the same time,uncertainties,confusion,and misunderstanding have persisted.The bilateral relationship has become more nuanced than the friend vs.enemy dichotomy,w

287、hile simplistic narratives of zero-sum rivalry blended into domestic politics and unavoidably policy making.The congressional involvement in foreign policy is not just another layer of complication.Rather,it contributes to the political uncertainty within the United States,making U.S.foreign policy

288、unpredictable and potentially inconsistent in the eyes of China,the international society and non-public actors such as the business community.This issue can be addressed in one of two ways.Option one,the United States and China should take the U.S.Congress into full consideration.The two must recon

289、struct a new approach to bilateral engagements in technology and trade to preserve the most critical shared interests in the field,stabilize the foundation of the bilateral engagement and avoid the complete cut of ties between the two economies.Option two,actions and statements of the U.S.Congress s

290、hould be taken less seriously by both sides.The U.S.leadership must boldly govern the decision-making process and firmly take hold of the foreign policy power.While it is necessary for domestic politics and the check-and-balance that congressional voices are to be heard,Congress should not hijack th

291、e administrations decision-making power in foreign policy.The United States as a single voice must clearly signal to China whos calling the shots in American foreign engagements.In Summary:PART V Conclusion and Implications33November 2022On the front of legislative issues,whats important isnt and wo

292、nt be the routine China bills,e.g.human rights resolutions and legislations or NDAA.Rather,the special-issue bills such as the Uyghur Forced Labor Prevention Act have become a popular form for Congress to specifically address“China issues”and call out China.At the same time,these legislations often

293、contain both an explicit and specific policy intent and broad coverage.Accordingly,significant uncertainties were introduced following the enactment of the bill and the U.S.government needs to devote significant efforts and resources to implement the bill,balancing congressional wishes,policy predic

294、tability as well as feasibility and practicality.As such,either the Congress should agree on a more comprehensive and cohesive strategy,list out issues of concerns of priority,and provide the administration with a good list of matters to focus on,or the enacted legislation should not be taken too se

295、riously,lest every one of these bills will turn out to require a comprehensive and costly response from the federal government,waste government resources and generate overall inefficiency.Finally,to avoid turbulence caused by another incident in the like of Pelosis visit to Taiwan,an U.S.-China legi

296、slative dialogue should be established to avoid technology and trade issues from running into unknown and mutually harmful grounds.As developments in the bilateral relationship and in global events have led to increasing unpredictability and call for more appropriate management,emerging policy issue

297、s in the field will require better coordination or at least sufficient communication between the two sides to avoid misunderstanding of intention and unnecessary escalation of tensions.1 According to search results from Congress.gov,the 116th Congress proposed 627 China-related bills and resolutions

298、,while the 115th Congress proposed 288.Congress.gov,last accessed October 24,2022,https:/www.congress.gov/.2 The CHIPS and Science Act,House Committee on Science,Space and Technology,last accessed October 24,2022,https:/science.house.gov/chipsandscienceact;CHIPS Act of 2022,136 Stat.1372,Public Law

299、117-67,enacted August 9,2022.3 Chuck Schumer,“Majority Leader Schumer Floor Remarks On Final Senate Passage Of Chips And Science Legislation,”Senate Democrats,July 27,2022,https:/www.democrats.senate.gov/newsroom/press-releases/majority-leader-schumer-floor-remarks-on-final-senate-passage-of-chips-a

300、nd-science-legislation;Joe Biden,“Remarks by President Biden on Rebuilding American Manufacturing Through the CHIPS and Science Act,”The White House,September 9,2022,https:/www.whitehouse.gov/briefing-room/speeches-remarks/2022/09/09/remarks-by-president-biden-on-rebuilding-american-manufacturing-th

301、rough-the-chips-and-science-act/.4 United States Innovation and Competition Act of 2021,S.1260,117th Congress(2021-2022),https:/www.congress.gov/bill/117th-congress/senate-bill/1260;United States Innovation and Competition Act of 2021,H.R.4521,117th Congress(2021-2022),https:/www.congress.gov/bill/1

302、17th-congress/house-bill/4521;CHIPS Act of 2022,136 Stat.1372,Public Law 117-67,enacted August 9,2022.5 Andrew Desiderio,“How Congress dream of a China confrontation got gutted,”Politico,July 20,2022.6 CHIPS Act of 2022,Public Law 117-67.7 Chuck Schumer,“Majority Leader Schumer Floor Remarks On Fina

303、l Senate Passage Of Chips And Science Legislation”;U.S.Senate Foreign Relations Committee,“Chairman Menendez Announces Bipartisan Comprehensive China Legislation,”April 8,2021,Chairmans Press,https:/www.foreign.senate.gov/press/dem/release/chairman-menendez-announces-bipartisan-comprehensive-china-l

304、egislation.8 National Science Foundation for the Future Act,H.R.2225,117th Congress(2021-2022),https:/www.congress.gov/bill/117th-congress/house-bill/2225,Section 2.9 Executive Office of the President,“STATEMENT OF ADMINISTRATION POLICY H.R.4521 America Creating Opportunities for Manufacturing,Pre-E

305、minence in Technology,and Economic Strength(COMPETES)Act of 2022,”Office of Management and Budget,the White House,February 1,2022,https:/www.whitehouse.gov/wp-content/uploads/2022/02/HR-4521-SAP.pdf.10 U.S.Senator from the Commonwealth of Virginia Mark R.Warner Press Release,“Bipartisan,Bicameral Bi

306、ll Will Help Bring Production of Semiconductors,Critical to National Security,Back to U.S.,”June 10,2020,https:/www.warner.senate.gov/public/index.cfm/2020/6/bipartisan-bicameral-bill-will-help-bring-production-of-semiconductors-critical-to-national-security-back-to-u-s.11 Semiconductor Industry Ass

307、ociation,“CHIPS for America Act Would Strengthen U.S.Semiconductor Manufacturing,Innovation,”June 10,2020,https:/www.semiconductors.org/chips-for-america-act-would-strengthen-u-s-semiconductor-manufacturing-innovation/.12 William M.(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2

308、021,134 Stat.3388,Public Law 116-283,enacted January 1,2021.13 William M.(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021,Public Law 116-283.14 U.S.Chamber of Commerce,“Letter to the Members of the United States Congress,”May 11,2022,https:/ in America Coalition,“Letter to Spe

309、aker Pelosi,Leader Schumer,Leader McConnell and Leader McCarthy,”March 31,2022,https:/chipsinamerica.org/wp-content/uploads/2022/03/SIAC-Letter-to-Congressional-Leaders-Urging-Swift-Enactment-of-Competitiveness-Legislation-Including-Semiconductor-Incentives.pdf.15 David Shepardson and Patricia Zenge

310、rle,“Biden meets CEOs,labor;backs bill to boost U.S.chips production,”Reuters,July 25,2022,https:/ Semiconductor Industry Association,“SIA Applauds Senates Procedural Vote to Advance CHIPS Act,Urges Final Passage,”July 26,2022,https:/www.semiconductors.org/sia-applauds-senates-procedural-vote-to-adv

311、ance-chips-act-urges-final-passage/;Washington Post Live,“Transcript:The Path Forward:American Competitiveness with Pat Gelsinger,CEO,Intel,”The Washington Post,July 12,2022,https:/ Information Technology Industry Council,“ITI Welcomes Progress on Bipartisan Innovation and Competition Legislation,”M

312、ay 12,2022,https:/www.itic.org/news-events/news-releases/iti-welcomes-progress-on-bipartisan-innovation-and-competition-legislation.Endnotes18 Information Technology Industry Council,“Letter to Majority Leader Schumer,Speaker Pelosi,Minority Leader McConnell,and Minority Leader McCarthy,”February 23

313、,2022,https:/www.itic.org/documents/general/FINALITIUSICACOMPETESConferenceLetter.pdf.19 National Association of Manufacturers,“Manufacturers Back Chips Bill,Call for Further Action from Congress,”July 19,2022,https:/www.nam.org/manufacturers-back-chips-bill-call-for-further-action-from-congress-183

314、00/?stream=series-press-releases.20 The White House,“FACT SHEET:CHIPS and Science Act Will Lower Costs,Create Jobs,Strengthen Supply Chains,and Counter China”;“The CHIPS and Science Act Fact Sheet as prepared by House Leadership,”House Committee on Science,Space and Technology,July 27,2022,https:/sc

315、ience.house.gov/download/chips-and-science-act-leadership-fact-sheet.21 William M.(Mac)Thornberry National Defense Authorization Act for Fiscal Year 2021,Public Law 116-283.22 National Association of Manufacturers,“Manufacturers Back Chips Bill,Call for Further Action from Congress.”23 The White Hou

316、se,“FACT SHEET:CHIPS and Science Act Will Lower Costs,Create Jobs,Strengthen Supply Chains,and Counter China,”August 9,2022,https:/www.whitehouse.gov/briefing-room/statements-releases/2022/08/09/fact-sheet-chips-and-science-act-will-lower-costs-create-jobs-strengthen-supply-chains-and-counter-china/

317、.24 The White House,“FACT SHEET:CHIPS and Science Act Will Lower Costs,Create Jobs,Strengthen Supply Chains,and Counter China”;“The CHIPS and Science Act Fact Sheet as prepared by House Leadership,”House Committee on Science,Space and Technology.25 In its fact sheet,the House leadership mentions“glo

318、bal leadership”either as a background for the bill or when emphasizing the need to add guardrails for funding recipients.“Emerging technologies”and“new technologies”are mentioned in passing when discussing specific provisions.The White House also noted the need to“strengthen American supply chains”a

319、s part of its general industrial policy and as one of the impacts of the bill,but does not go deeper than that.26 CHIPS Act of 2022,Public Law 117-67.27 CHIPS Act of 2022,Public Law 117-67.28 United States Innovation and Competition Act of 2021,S.1260;United States Innovation and Competition Act of

320、2021,H.R.4521.29 CHIPS Act of 2022,Public Law 117-67.30 CHIPS Act of 2022,Public Law 117-67.31 The White House,“FACT SHEET:CHIPS and Science Act Will Lower Costs,Create Jobs,Strengthen Supply Chains,and Counter China”;Mark Sullivan,“Senator Mark Kelly:Passing the CHIPS Act will help bring down costs

321、 of tens of thousands of consumer products,”Fast Company,July 28,2022,https:/ CHIPS Act of 2022,Public Law 117-67.33 CHIPS Act of 2022,Public Law 117-67.34 CHIPS Act of 2022,Public Law 117-67.35 CHIPS Act of 2022,Public Law 117-67.36 CHIPS Act of 2022,Public Law 117-67.37 CHIPS Act of 2022,Public La

322、w 117-67.38 CHIPS Act of 2022,Public Law 117-67.39 CHIPS Act of 2022,Public Law 117-67.40 CHIPS Act of 2022,Public Law 117-67.41 CHIPS Act of 2022,Public Law 117-67.42“Science Committee Provisions in the CHIPS and Science Act Fact Sheet,”House Committee on Science,Space and Technology,July 27,2022,h

323、ttps:/science.house.gov/download/division-b-sst-fact-sheets.43 CHIPS Act of 2022,Public Law 117-67.44 CHIPS Act of 2022,Public Law 117-67.45 CHIPS Act of 2022,Public Law 117-67.46 CHIPS Act of 2022,Public Law 117-67.47 CHIPS Act of 2022,Public Law 117-67.48 The new CHIPS and Science Act establishes

324、a CHIPS for America Fund within the Commerce department for related investment;funding for each year“remains available until expended.”49 Namely,CHIPS for America Defense Fund.50 The number was$1.8 billion under USICA.51 Brett Fortnam,“Pelosi confident that competition bill can pass Congress before

325、July 4th,”Inside U.S.Trade,May 19,2022,https:/ Spiegelman and Brett Fortnam,“Blumenauer:Compromise competition bill absolutely doable by Memorial Day,”Inside U.S.Trade,March 11,2022,https:/ of the House Nancy Pelosi Press Release,“Pelosi,Schumer Statement on Bipartisan,Bicameral Leadership Meeting o

326、n COMPETES/USICA Conference,”June 21,2022,https:/www.speaker.gov/newsroom/62122.52 United States Innovation and Competition Act of 2021,S.1260;United States Innovation and Competition Act of 2021,H.R.4521.53 Xinhua,“Spokesperson of the Foreign Affairs Committee of Chinas National Peoples Congress ga

327、ve remarks concerning the U.S.Congress Senate Foreign Relations Committees passage of the Strategic Competition Act of 2021,”,April 22,2021,http:/ Ministry of Foreign Affairs,“Take the opportunity and maintain and advance the U.S.-China trade and economic collaboration and local exchanges,”November

328、30,2021,https:/ Xinhua,“China strongly opposes US chips bill:Commerce ministry,”The State Council Information Office of the Peoples Republic of China,August 19,2022,http:/ Xinhua,“China strongly opposes US chips bill:Commerce ministry.”57 Xinhua,“China strongly opposes US chips bill:Commerce ministr

329、y.”58 Ministry of Foreign Affairs of the Peoples Republic of China,“Foreign Ministry Spokesperson Zhao Lijians Regular Press Conference on July 28,2022,”July 28,2022,https:/ China Daily,“China condemns unfair US chip bill,”The State Council Information Office of the Peoples Republic of China,August

330、11,2022,http:/ Jake Sullivan,“Remarks by National Security Advisor Jake Sullivan at the National Security Commission on Artificial Intelligence Global Emerging Technology Summit,”The White House,13 July 2021,https:/www.whitehouse.gov/nsc/briefing-room/2021/07/13/remarks-by-national-security-advisor-

331、jake-sullivan-at-the-national-security-commission-on-artificial-intelligence-global-emerging-technology-summit/.61 United States Senate Committee on Banking,Housing,and Urban Affairs,“Examining Outbound Investment,”hearing,September 29,2022,https:/www.banking.senate.gov/hearings/examining-outbound-i

332、nvestment.62 Washington International Trade Association,“De Maximus De Minimis Debate,”event,June 3,2022,https:/www.wita.org/events/de-minimis/.63 Laura Silver,“Some Americans views of China turned more negative after 2020,but others became more positive,”Pew Research Center,September 28,2022,https:

333、/www.pewresearch.org/fact-tank/2022/09/28/some-americans-views-of-china-turned-more-negative-after-2020-but-others-became-more-positive/.64 Dave Levinthal,“Mehmet Oz says hell be tough on China as a senator.But a 2013 announcement from a Chinese health tech company offers a different perspective,”Insider,August 23,2022,https:/ United States Senate Committee on Banking,Housing,and Urban Affairs,“Br