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Commerce Secretary Gina Raimondo met with House Democratic lawmakers on Wednesday to discuss the bill. She said American manufacturing had been in decline for more than three decades, leading to a loss of jobs and know-how.
âDuring this slow atrophy, we have become incredibly dependent on countries around the world,â Raimondo said. âAnd, therefore, what this bill is saying is to stop the decline.â
One of the biggest flashpoints is the $8 billion set aside in the legislation to help developing countries reduce emissions and deal with climate change. President Barack Obama pledged $3 billion for the fund, but former President Donald Trump withheld $2 billion.
Rep. Michael McCaul, the top Republican on the House Foreign Affairs Committee, called it an âirresponsible UN slush fundâ that has already provided at least $100 million to China.
Meanwhile, Americaâs share of the worldâs semiconductor manufacturing has steadily eroded, from 37% in 1990 to around 12% today. The Biden administration and lawmakers are trying to reverse that trend, which industry officials say is driven by foreign competitors receiving large government subsidies.
The pandemic has put a strain on the chip supply chain. The Commerce Department released a report last week that found median inventory for certain semiconductor products fell from 40 days in 2019 to less than five days in 2021. The report also said stakeholders are not seeing not the problem will go away in the next six months. . The administration cited the findings as calling on Congress to act.
Tensions with China are reflected in much of the legislation. In a nod to concerns about the origins of COVID-19, the bill directs the president to submit a report to Congress on the most likely origin of the virus, the level of confidence in that assessment, and the challenges of making such an assessment.
Republicans dismissed the provision as âno independent investigation, no penalties, no punishment.â They want a select committee of lawmakers to look into the origins of COVID-19. âInstead of taking action to get real accountability, heâs going to ask them for a report,â Republican Leader Kevin McCarthy of California said.
Another provision would subject more lower-cost products made in China to tariffs. Currently, imports valued at less than $800 are exempt from expedited processing and tariffs. The bill eliminates the threshold for certain countries, including China.
âThe investments this bill makes in America â semiconductor manufacturing, supply chains, learning â allow America to compete effectively with China,â Raimondo said. âIf youâre serious about competing with China, you should vote yes on this.â
The Senate passed its computer chip legislation in June by a vote of 68 to 32, representing a rare episode of bipartisanship on major legislation. If the House bill passes, negotiators will try to find a compromise that both houses could agree to, although it is not clear they could do so before the midterm elections. It would rob the Biden White House of the opportunity to show progress on an important economic issue.
Raimondo called for swift negotiations with the Senate once the bill passes. Anything that emerges will need the support of 10 50-50 Senate Republicans to pass. She said she was convinced that a compromise could be found.
âThere are no irreconcilable differences, I can say that,â Raimondo said.
âWe will send House Republicans a much better option to vote in the next two months,â said Sen. Todd Young, R-Ind., who worked with Senate Majority Leader Chuck Schumer on the version of the Senate Legislation.

