Schumer Calls for CHIPS 2.0 Legislation to Up Competition with China

Earlier this month, Senate Majority Leader Chuck Schumer (D-NY) announced plans to develop bipartisan legislation aimed at strengthening the U.S.’s ability to continue outcompeting China in key technology development. As previously reported, earlier versions of the CHIPS and Science Act that was enacted last year and focused on domestic investment in semiconductor manufacturing, had a much larger focus on direct competition with China. However, many of those provisions pertaining to trade and foreign policy were dropped at the eleventh hour in order to get the final bill across the finish line. Now, Sen. Schumer wants to reinvigorate those and other provisions through a “CHIPS 2.0” type of initiative. In particular, Schumer is calling on several Senate committees to start developing legislation and holding hearings to advance a bill that could be considered on the Senate floor.

According to a press release and press conference, Schumer expects the measure to address five key policy areas: limiting the flow of advanced technology to the Chinese Government, possibly through stronger export controls, sanctions, and other means; curtailing the flow of investment to the Chinese Government; securing domestic economic investment in areas such as biotechnology and biomanufacturing, among others; underscoring U.S. commitment to economic allies and maintaining partner alignment; and safeguarding allies’ and partners’ security and maintaining strategic alliances, namely with Taiwan.

Timing of such a bill is not yet known; however, Congressional initiatives directed at limiting Chinese influence on the global stage often are bipartisan, which means such legislation could see action this year.