US Senate approves $50bn for tech to counter China

The US Senate has approved $50 billion for tech and AI advancements to counter China.

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The US Senate has approved $50 billion for tech and AI advancements to counter China.

The US has now planned to invest in semiconductor production and AI development to equalize China in competition.

The 68-32 vote for the bill on Tuesday demonstrates how confronting China economically is an issue that unites both parties in Congress. It is a rare unifying issue in an era of division as pressure grows on Democrats to change Senate rules to push past Republican opposition and gridlock. The centerpiece of the bill is a $50bn emergency allotment to the US commerce department.

The bill will go to the House of Representatives and will be discussed there before getting signed by the President. Joe Biden is hopeful that the HOR will pass this bill as it would be in the best interest of the US. 

US allocation of budget to the tech ad innovation department has fallen significantly from 37% to 12%. Moreover, computer chip production has also faced a shortfall. 

The bill has several other China-related provisions, including prohibiting the social media app TikTok from being downloaded on government devices and would block the purchase of drones manufactured and sold by companies backed by the Chinese government.

The present US administration has adopted a different approach of containing China by using soft power and competing in the economic sphere. The pandemic has already cost the superpower a lot in terms of its economy and it can now take no risk to let China succeed.