US Senate Nears Passage of $280 Trillion Bill to Curb China

[Asia Economy New York=Correspondent Baek Jong-min] The US Congress is on the verge of passing a 280 trillion won-scale bill aimed at countering China.

[Image source=Yonhap News]

According to US media such as Politico on the 2nd (local time), the bill named the "America COMPETES Act" is expected to pass the Senate soon. The Senate originally planned to pass the bill on the 27th of last month, but some Republican senators raised objections, saying there was not enough time to revise the bill, so the discussion was postponed to the 8th.

There is a prevailing view that the passage of the bill itself will not be a problem, as both Democrats and Republicans share bipartisan consensus on a comprehensive bill to counter China. Politico described the bill as "possibly the last major bipartisan victory the Senate can achieve this year."

This bill combines several bills, including the Senate Foreign Relations Committee's Strategic Competition Act, encompassing measures to counter China through securing US competitiveness.

The bill amounts to $250 billion (approximately 280 trillion won). Of this, $190 billion is allocated to strengthening US technology, and $54 billion (60 trillion won) is designated for boosting semiconductor and communication equipment production.

The bill also includes diplomatic measures to respond to China's increasing international influence by enhancing cooperation with allies and increasing US engagement in international organizations.

After passing the Senate, the bill will go through the House of Representatives, and once signed by President Joe Biden, it will come into effect. Since the administration is also concerned about countering China, President Biden is expected to sign the bill without exercising a veto.