U.S. Orders CHINA Ban – At Least 10 Years…
(DailyVantage.com) – Since the COVID-19 pandemic, a microchip shortage has led to a break in supplies of many goods, from cell phones and computers to automobiles. The United States currently accounts for only 10% of the world’s production of these vital components. With the signing of the CHIPS and Science Act in August, the Biden Administration hopes to increase manufacturing at home and reduce the country’s reliance on China. Now, it’s gone a step further and banned US firms from building “advanced technology” facilities in the communist country for 10 years.
In a White House press conference, Commerce Secretary Gina Raimondo explained the stipulations of the CHIPs Act, which is committing a total of $280 billion to research and manufacturing, saying it’s vital to protect our “national security.” As a guardrail, the companies that receive funding from this legislation cannot use said money to invest in or develop “leading-edge technologies in China” or send the latest developments overseas. These companies stand to gain a 25% investment tax credit.
US bars 'advanced tech' firms from building China factories for 10 years https://t.co/2bCFuW1oVn
— BBC News (World) (@BBCWorld) September 7, 2022
This action by the Biden Administration will hopefully boost the US’ competitive and technological edge over the communist nation. It expects to begin soliciting applications from firms by February 2023 and disbursing the funds in the spring. South Korea and Taiwan currently build most of the world’s semiconductors.
What do you think about the ban on US firms? Will it hurt or harm trade?
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