US Senate Includes $280 Trillion 'China Containment Act' in Defense Authorization Act

Chuck Schumer, Senate Majority Leader

[Asia Economy Reporter Yujin Cho] The U.S. Congress has decided to include a China containment bill in the National Defense Authorization Act (NDAA) for the 2022 fiscal year.

Senate Majority Leader Chuck Schumer (D) stated in a Senate speech on the 15th (local time), "Addressing the global supply chain crisis is urgent and can no longer be delayed," adding, "We will establish a U.S. Innovation and Competition Act (USICA) provision within the NDAA."

The Innovation and Competition Act supports the development and production of key industrial technologies, such as semiconductors and robotics, where competition with China is intense.

This bill combines various bills prepared by each standing committee, including the Strategic Competition Act drafted by the Senate Foreign Relations Committee. It encompasses measures to contain China through securing U.S. competitiveness amid intensifying military and economic competition with China.

Of the total bill amounting to $250 billion (approximately 280 trillion KRW), $190 billion will be invested in technology development, and $54 billion is expected to be specifically allocated to semiconductors, microchips, and communication equipment.

The bill passed the Senate in June through a bipartisan vote and is expected to be enacted after a House vote and President Joe Biden's signature.

This content was produced with the assistance of AI translation services.