Tag: US Senate

Explained: How cryptocurrency fits into infrastructure bill

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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What does Bitcoin have to do with roads and bridges? A lot right now in the US Congress. One way lawmakers propose to pay for the USD 1 trillion infrastructure bill the Senate approved on Tuesday is by imposing tax-reporting requirements for cryptocurrency brokers, the way stockbrokers report their customers’ sales to the IRS. It could open the way for tighter regulation of cryptocurrency something the Biden administration is moving toward as it also pushes for tax compliance.

The plan could raise about USD 28 billion in revenue over 10 years, congressional accountants estimate.

So, the currency you can’t hold in your hand would effectively pay for roads, bridges, water systems, internet broadband access and shoring up the electrical grid, what President Joe Biden called a generational investment on par with building the transcontinental railroad in the 1800s or the Interstate highway system in the ’50s. That’s testament to the explosive growth of cryptocurrencies in recent years an enticing potential revenue source and the mounting push by some government officials to put new reins around a largely unregulated market.

After weeks of wrangling, the Senate passed the bipartisan infrastructure package in a 69-30 vote. It now moves to the House.

What’s the story with cryptocurrency?

The market for cryptocurrencies has ballooned to an estimated USD 1.8 trillion. They’re basically lines of computer code that are digitally signed each time they travel from one holder to the next. Not tied to banks or governments, they allow users to spend or receive money anonymously. That appeals to libertarians, off-the-grid types and risk-taking millennials who believe the financial system is rigged.

But it’s also favoured by international criminals, money launderers, drug dealers and ransomware hackers.

The most widely traded cryptocurrency is Bitcoin, now worth around USD 46,000 each, down from a high in April of about USD 64,800. It’s notoriously volatile, in some instances spiking or plunging on public pronouncements by Elon Musk, the provocative Tesla Inc. CEO. Some businesses now accept Bitcoin as payment. Other well-known cryptocurrencies include Ethereum, Dogecoin, Ripple and Litecoin. All told, there are thousands. Bitcoin and others can be bought and sold on exchanges with US dollars and other national currencies

Where do government officials stand?

On both sides of the coin.

Some lawmakers see cryptocurrency as a font of technological innovation, especially in the development of blockchain, the digital ledger that records transactions.

Top US regulators, on the other hand, are flashing danger signs. Gary Gensler, the chairman of the Securities and Exchange Commission appointed by Biden, said last week that investors need more protection in the cryptocurrency market, which he called rife with fraud, scams and abuse and like the Wild West. While the SEC has won dozens of cases against crypto fraudsters, Gensler said the agency needs more authority from Congress and more funding to regulate the market.

The Federal Reserve, meanwhile, is considering developing its own digital currency pegged to the US dollar. A so-called digital dollar could enable faster payments among banks, consumers and businesses.

You’ve got federal agencies not talking on the same page, says Suzanne Lynch, a professor at Utica College who focuses on financial crime. It’s so grey right now.

What’s the connection with the infrastructure bill?

The debate over cryptocurrency landed in the middle of the Senate’s work on the massive infrastructure package. An earlier plan to pay for the legislation, by bolstering IRS enforcement to crack down on tax cheating by individuals and businesses, went down as Republicans objected to expanding the agency’s reach. That would have brought in an estimated USD 100 billion over 10 years.

Going back to the drawing board on revenue raisers, the plan was hatched for stricter tax-reporting requirements for cryptocurrency brokers. The estimated USD 28 billion it would generate over a decade is only about a quarter of what the IRS crackdown proposal envisaged. But it’s still the biggest revenue raiser of several in the infrastructure bill.

It raised objections from some senators and unleashed an opposition lobbying blitz from the cryptocurrency industry as well as internet freedom advocacy groups.

The provision defines brokers too broadly, opponents say, potentially stifling innovation by unfairly putting new tax-reporting obligations on software developers and crypto miners users who create coins by lending computing power to verify other users transactions and receive coins in exchange. Those people don’t have access to cryptocurrency users’ data the IRS would be collecting, opponents say.

Opponents brought forward amendments to the provision and a compromise emerged. But it failed to muster Senate approval, pushing the debate over cryptocurrency, taxes and brokers to the House.

What’s the situation now with cryptocurrency and taxes?

Some cryptocurrency brokers already report transactions to the IRS, though most don’t, experts say. Brokers place buy and sell orders for users on the cryptocurrency exchanges.

The exchanges are required to collect personal identifying information from users and report their annual activity to the IRS.

The IRS defines cryptocurrency as property similar to stocks or gold. That means you pay capital gains tax when you sell it or cash it in at a profit.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US Senate passes bipartisan $1 trillion infrastructure bill

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US Senate on Tuesday passed a USD 1 trillion infrastructure package that is a top priority for US President Joe Biden, a bipartisan victory for the White House that could provide the nation’s biggest investment in decades in roads, bridges, airports and waterways.

The vote was 69-30 in the 100-seat chamber, with 19 Republicans voting yes. Immediately after that vote concluded, Senators began voting on a follow-up USD 3.5 trillion spending package that Democrats plan to pass without Republican votes.

Polls show that the drive to upgrade America’s infrastructure, hammered out by a bipartisan group of senators over months of negotiations, is broadly popular with the public.

The bill still has to go to the House of Representatives and the spirit of cooperation in Congress that led to Tuesday’s vote will likely prove fleeting.

Senate Majority Leader Chuck Schumer expects also to have the votes to pass the budget resolution laying the groundwork for USD 3.5 trillion to be spent on healthcare, climate change and other Biden priorities that Democrats will almost certainly have to pass over Republican objections in a manoeuvre known as “budget reconciliation.”

“When the Senate is run with an open hand rather than a closed fist senators can accomplish big things,” Schumer said shortly before the voting began.

Once that resolution is adopted, Democrats will begin crafting the reconciliation package for a vote on passage after they return from their summer break in September.

Democratic House Speaker Nancy Pelosi has said repeatedly that her chamber will not take up either bill until she has both in hand, meaning that months of work remain before Tuesday’s measure would go to Biden’s desk to be signed into law.

The non-partisan Congressional Budget Office on Thursday said the infrastructure bill would increase federal budget deficits by USD 256 billion over 10 years — an assessment rejected by negotiators who said the CBO was undercounting how much revenue it would generate.

After working for two consecutive weekends on the infrastructure bill, a “vote-a-rama” session that could run late into the evening will be in store for the Senate.

Senate Minority Leader Mitch McConnell, who voted for the infrastructure bill, signalled that Republicans would try to use the voting sessions to pick off support from moderate Democrats for what he called a “radical” larger spending package that would create a permanent welfare state and usher in the largest peacetime tax hike in US history.

“Every single senator will be going on record over and over and over,” McConnell added. “We will debate, and we will vote, and we will stand up, and we will be counted, and the people of this country will know exactly which senators fought for them.”

The budget plan would provide various Senate committees with top-line spending levels for a wide range of federal initiatives, including helping the elderly get home healthcare and more families afford early childhood education.

It also would provide tuition-free community college and foster major investments in programs to significantly reduce carbon emissions blamed for climate change.

Later, Senate committees would have to fill in the details for scores of federal programs.

The budget blueprint was formally unveiled on Monday, the same day a UN climate panel warned that global warming was reaching emergency levels, or what UN Secretary-General Antonio Guterres described as a “code red for humanity.”

Senate passage of the infrastructure bill and the budget plan would clear the way for it to begin a month-long summer break.

When Congress returns in September, it will not only debate the large investment measures but have to fund government activities for the fiscal year beginning on October 1, increase Washington’s borrowing authority and possibly try to pass a voting reform bill.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bipartisan bill unveiled, but leaves out key climate, clean energy steps

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The USD 1 trillion bipartisan infrastructure package unveiled by the Senate includes more than USD 150 billion to boost clean energy and promote climate resilience by making schools, ports and other structures better able to withstand extreme weather events such as storms and wildfires.

But the bill, headed for a Senate vote this week, falls far short of President Joe Biden’s pledge to transform the nations heavily fossil-fuel-powered economy into a clean-burning one and stop climate-damaging emissions from US power plants by 2035.

Notably, the deal omits mention of a Clean Electricity Standard, a key element of Biden’s climate plan that would require the electric grid to replace fossil fuels with renewable sources such as solar, wind and hydropower.

Nor does it include a Civilian Climate Corps, a Biden favourite and a nod to the Great Depression-era New Deal that would put millions of Americans to work on conservation projects, renewable energy and helping communities recover from climate disasters.

The White House says the bipartisan deal is just the first step, with a proposed USD 3.5 trillion, Democratic-only package following close behind. The larger bill, still being developed in Congress, will meet Biden’s promise to move the country toward carbon-free electricity, make America a global leader in electric vehicles and create millions of jobs in solar, wind and other clean-energy industries, supporters say.

While the bipartisan plan is “a good start, lawmakers will deal with the climate crisis in the magnitude, scope and scale that’s required” in the Democratic-only bill, said Sen. Ed Markey, D-Mass.

For now, the focus is on the bipartisan deal, which includes USD 550 billion in new spending for public works projects, USD 73 billion of that to update the electric grid and more than USD 50 billion to bolster infrastructure against cyberattacks and climate change. There’s also USD 7.5 billion for electric charging stations.

Citing the deadly Texas power outages earlier this year, the White House touted spending to upgrade the nation’s power grid and boost renewable energy. An Energy Department study found that power outages cost the US economy up to USD 70 billion a year. The bill also invests in demonstration projects for advanced nuclear reactors, carbon capture and storage and so-called clean hydrogen that can be burned with few emissions.

Still, the measure falls far short of meeting Biden’s promise to address the climate crisis, even as triple-digit temperatures across the West caused hundreds of deaths this summer and a busy Atlantic hurricane season causes extensive damage.

“It is clear that the deal does not meet the moment on climate or justice,” said Tiernan Sittenfeld, a senior vice president of the League of Conservation Voters.

This looks like the Exxon Infrastructure Bill,” said Janet Redman of Greenpeace USA. An infrastructure bill that doesn’t prevent a full-blown climate catastrophe by funding a swift transition to renewable energy would kill millions of Americans.”

The bill offers glimmers of hope such as a multibillion-dollar commitment to clean up and remediate old oil wells and mines, Redman said, calling on Democrats to demonstrate the courage to be visionary and go bigger” in the partisan bill expected later this year.

One of the lead negotiators, Sen. Rob Portman, R-Ohio, acknowledged that no one got everything they wanted in the bipartisan bill. But we came up with a good compromise that’s going to help the American people,” he said.

“This is about infrastructure,” Portman said at the White House. This is roads and bridges, but also lots of other kinds of infrastructure, including broadband, our water system and our rail system all of which is good for the economy. This will lead to more efficiency and higher productivity, more economic growth.”

The plan includes USD 21 billion to clean up brownfields and other polluted sites, reclaim abandoned mine land and cap orphaned oil and gas wells. The plan will help communities near contaminated industrial sites and rural areas where abandoned oil wells pose a continuing hazard, the White House said.

The Senate voted, 66-28, Friday to advance the bill, but it’s unclear if enough Republicans will eventually join Democrats to support final passage. Senate rules require 60 votes in the evenly split 50-50 chamber to advance the bill but a simple majority to pass it.

The measure also faces turbulence in the closely divided House, where progressives are pushing for increased spending on climate change and other issues and centrist lawmakers are wary of adding to the federal debt.

Rep. Peter DeFazio, D-Ore., chairman of the House Transportation and Infrastructure Committee, called the Senate bill inadequate and pledged to push for changes in the House, which passed a separate, USD 715 billion transportation and water bill in early July. Transportation is the largest contributor to greenhouse gas emissions in the US

DeFazio, the House bill’s lead sponsor, said his bill “charts our path forward,” adding that he is “fighting to make sure we enact a transformative bill that supports our recovery and combats the existential threat of climate change.”

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sweeping bill to address China tech threat likely to take weeks in US House

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A highly touted bill to boost the United States’ ability to compete with Chinese technology could take weeks to get through Congress, as US House of Representatives lawmakers planned to write their own legislation, which must then be combined with what was approved by the Senate this month.

House Democratic Majority Leader Steny Hoyer said House committees were working on their legislation, which he hoped would pass with support from Republicans as well as Democrats. ”I think the House committee – or committees – have views that they want to express,” Hoyer told reporters. ”… I don’t think there’s anything nefarious about it. I hope that we will move forward with a bill.”

Once the House passes its bill, negotiators from both chambers would work out differences and agree on a final version in the conference. The House and Senate would both have to pass that final measure before it could be sent to the White House for President Joe Biden to sign into law.

”Hopefully we can work that out so that the best of both bills will be available to us, so that we can ensure our competitive status vis-a-vis China in particular and also dealing with some of the nefarious things that China does to pursue unfair trade tactics with our country, including intellectual property theft,” Hoyer said.

House Science Committee Chairwoman Eddie Bernice Johnson said on Tuesday she favored an approach based on the current capabilities of the National Science Foundation and Department of Energy, in contrast to the approach outlined in the Senate bill.

”If we are to remain the world leader in science and technology, we need to act now. But we shouldn’t act rashly,” Johnson said as the committee considered two bills that would be part of the House bill.

”Instead of trying to copy the efforts of our emerging competitors, we should be doubling down on the proven innovation engines we have at the National Science Foundation and the Department of Energy,” she said.

The US Senate on June 8 backed by a strong bipartisan 68-32 majority the ”US Innovation and Competition Act,” or USICA, which authorizes about USD 190 billion for provisions to strengthen US technology and research, and approved USD 54 billion to increase US production and research into semiconductors and telecommunications equipment.

It was not immediately clear how the House bill might differ from the Senate’s approach on semiconductors. A global shortage of chips that has slowed production in the automobile and tech industries has added fuel to calls for the United States to rely less on China.

China’s parliament expressed ”strong indignation and resolute opposition” to the Senate bill, which was praised in Washington as a rare example of bipartisan action by the deeply divided US Congress.

Biden’s fellow Democrats control both the House and Senate, but only by narrow margins. However, the desire for a hard line in dealings with Beijing is a rare bipartisan sentiment in the deeply divided Congress.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US Senate passes key bill to combat China’s growing economic influence

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US Senate has passed a rare bipartisan legislative package aimed at improving the country’s economic competition with China by investing billions of dollars in science and technology and holding Beijing accountable for its predatory tactics.

The important anti-China bill was passed by the Senate with 68-32 votes on Tuesday. It is considered a major political victory by Senate Majority Leader Chuck Schumer who had made it a top priority.

The US Innovation and Competition Act invests more than USD 100 billion of taxpayer funds to solidify the United States’ leadership in scientific and technological innovation critical to national security and economic competitiveness. It will also strengthen the security of essential supply chains, and US ability to solve supply-chain disruptions during crises.

Additionally, the bill increases funding for National Science Foundation activities. Passing this bill — now called the US Innovation and Competition Act — is the moment when the Senate lays the foundation for another century of American leadership. Let me say that again: this bill could be the turning point for American leadership in the 21st Century, Schumer said on the Senate floor.

This legislation will go down as one of the most significant, bipartisan achievements of the US Senate in recent history, the senior Democratic Senator said as 19 Senate Republicans joined Democrats voting for passage. Around the globe, authoritarian governments believe that squabbling democracies like ours can’t unite around national priorities. They believe that democracy itself is a relic of the past, and that by beating us to emerging technologies, many of them will be able to re-shape the world in their own image, he said.

The ruling Communist Party of China (CPC) has made no bones about its desire for global economic dominance through whatever means necessary. They’ve actively worked to buy up, influence, spy on and steal American innovation, Senator Chuck Grassley said. They’ve sought to spread pro-China propaganda at our research and academic institutions. And while their ill-gotten approach to economic advancement has boosted their status in the world, they claim to be a developing nation to get better deals to finance their activities, he said, adding that this is the behaviour of a responsible nation.

Reacting sharply to the US bill, China on Wednesday denounced the legislation, saying it as full of ideological prejudice and driven by a Cold-War mentality, smears and slanders China’s development path. The Foreign Affairs Committee of the National People’s Congress (NPC), or China’s national legislature, said the bill interfered in China’s internal affairs and attempted to contain its development under the banner of “innovation and competition.” It attempts to maintain the US global hegemony by fanning the so-called China threat, to interfere in China’s internal affairs on the pretext of human rights and religion, and to take away China’s legitimate right to development by means of “decoupling” in the scientific, technological and economic areas, the committee said in a statement in Beijing.

The statement also criticised certain provisions of the bill expressing support for Taiwan, the self-governing island that China claims as its own territory; references to the former British colony of Hong Kong, where Beijing is accused of severely restricting democracy; and criticism of Chinese policy in Xinjiang, where Beijing is accused of grossly violating the human rights of minority Muslims. Responding to a question on the US bill, foreign ministry spokesman Wang Wenbin said it slandered China’s domestic and foreign policies and seriously interfered in China’s internal affairs on issues such as Taiwan, Hong Kong, Xinjiang and Tibet.

The bill is full of zero-sum cold war mentality and runs counter to the common desire of all sectors of China and the US to strengthen exchanges and cooperation, he said. Urging the US not to treat China as an “imaginary enemy,” Wang said China is committed to developing a relationship of non-conflict, non-confrontation, mutual respect and win-win cooperation with Washington but will continue to firmly safeguard China’s sovereignty, security and development interests at the same time. In Washington, Senator Sherrod Brown said that China spent billions propping up state-owned enterprises and subsidising research and development, and they also take US ideas and use them to compete and sometimes cheat against American workers and businesses.

This is an important, bipartisan step to ensure the technologies that will drive the next generation of economic growth and manufacturing from semiconductors to hydrogen buses to the next generation jet engine will be developed in America, and put Ohioans to work at good paying jobs, he said. This bill will help the US stop foreign governments from stealing our research and innovation, so that American taxpayer-funded research will be used to create jobs for hard-working Americans, Senator Rob Portman said. The bill still needs to pass the House of Representatives before going to President Joe Biden’s desk. The House Foreign Affairs Chairman Gregory Meeks introduced a corresponding bill in the House last month but it is not clear when that legislation will get a vote, CNN reported.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US Senate passes key bill to combat Chinese competitiveness

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US Senate has passed a major legislative package aimed at improving the country’s economic competition with China and holding its Communist government accountable for predatory tactics. The important anti-China bill was passed by the Senate with 68-32 votes. It is considered a major political victory by Senate Majority Leader Chuck Schumer who had made it a top priority.

The US Innovation and Competition Act invests more than USD 100 billion of taxpayer funds to solidify the United States’ leadership in scientific and technological innovation critical to national security and economic competitiveness. It will also strengthen the security of essential supply chains, and the US’s ability to solve supply-chain disruptions during crises.

Additionally, the bill increases funding for National Science Foundation activities. Passing this bill — now called the US Innovation and Competition Act — is the moment when the Senate lays the foundation for another century of American leadership. Let me say that again: this bill could be the turning point for American leadership in the 21st Century, Schumer said on the Senate floor.

This legislation will go down as one of the most significant, bipartisan achievements of the US Senate in recent history, the senior Democratic Senator said. Around the globe, authoritarian governments believe that squabbling democracies like ours can’t unite around national priorities. They believe that democracy itself is a relic of the past and that by beating us to emerging technologies, many of them will be able to re-shape the world in their own image, he said.

The ruling Communist Party of China (CPC) has made no bones about its desire for global economic dominance through whatever means necessary. They’ve actively worked to buy up, influence, spy on and steal American innovation, Senator Chuck Grassley said. They’ve sought to spread pro-China propaganda at our research and academic institutions. And while their ill-gotten approach to economic advancement has boosted their status in the world, they claim to be a developing nation to get better deals to finance their activities, he said, adding that this is the behaviour of a responsible nation.

Senator Sherrod Brown said that China spent billions propping up state-owned enterprises and subsidising research and development, and they also take US ideas and use them to compete and sometimes cheat against American workers and businesses. This is an important, bipartisan step to ensure the technologies that will drive the next generation of economic growth and manufacturing from semiconductors to hydrogen buses to the next generation jet engine will be developed in America and put Ohioans to work at good-paying jobs, he said.

This bill will help the US stop foreign governments from stealing our research and innovation so that American taxpayer-funded research will be used to create jobs for hard-working Americans, Senator Rob Portman said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Explained: The US ICA 2021 which challenges China’s growing influence in technology

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US Senate, on May 27, voted to end debate on the $250 billion US Innovation and Competition Act of 2021 (USICA 2021) and moved nearer to a final vote on the legislation, Reuters reported.

Senators voted 68-30 for the USICA 2021 which challenges Beijing’s growing technological power by supporting US chipmakers and science research.

Once the 1,400 plus page bill is passed by the Senate, it will have to pass the House of Representatives to be sent to the White House for President Joe Biden to sign into law.

Also read: Dell, HP say chip shortages will hit PC supplies this year

The Innovation and Competition Act is key to President Joe Biden’s infrastructure plans, the report mentioned.

What the USICA 2021 proposes

The USICA 2021 authorises about $190 billion to strengthen US technology in general and $54 billion specifically to increase the production of semiconductors, microchips, and telecommunication equipment.

The Act, when comes into effect, will significantly boost US semiconductor chip production and research on basic and advanced technology over the next five years to better compete with China.

Also read: What are the top cryptocurrencies to invest now? Here’s what experts suggest

The proposal includes $49.5 billion in emergency supplemental appropriations to fund the chip provisions that were included in this year’s National Defense Authorization Act, but which require a separate process to garner funding.

A summary of the bill said, “There is an urgent need for our economic and national security to provide funding to swiftly implement these critical programs. The Chinese Communist Party is aggressively investing over $150 billion in semiconductor manufacturing so they can control this key technology.”

The legislation also seeks to counter Beijing’s growing global influence through diplomacy, by working with allies and increasing US involvement in international organizations after former Republican President Donald Trump pulled Washington out as part of his “America First” agenda.

Republicans, Democrats unite

The vote is an indication of the US Congress increasingly seeking to take a tough line against China. The voting pattern indicates one of the few truly bipartisan sentiments in the deeply divided US Congress, which is narrowly controlled by Biden’s Democrats.

Also read: Nebraska passes law to let banks accept cryptocurrencies

There are very few issues Democrats and Republicans agree on – supporting a bill aimed at challenging Beijing’s growing global influence is one of them. This comes as the US-China bilateral trade deficit has run more than $100 billion a year since 2002.

New regulations or reviews of investments and deals in China, could disrupt the future operations of US businesses in that country, including with respect to semiconductors and medical equipment.

Attract most advanced chip plants to US

A key goal of the funding is to bring the world’s most advanced chip plants to the United States, and only Taiwan Semiconductor Manufacturing Co and Korea’s Samsung Electronics Co have the technology to do that, Reuters report mentioned.

Any restrictions on subsidies to foreign companies would likely benefit Intel Corp, the long-time US chip-making giant that has promised to redouble its efforts in the most advanced technologies and spend more than $20 billion on new US plants. Intel last year moved to sell off its only chip factory in China to SK Hynix.

The US had a 37 percent share of semiconductors and microelectronics production in 1990 whereas at present only 12 percent of semiconductors are being manufactured in the United States.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US Senate advances sweeping tech bill taking aim at China

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US Senate on Thursday advanced a sweeping package of legislation intended to boost the country’s ability to compete with Chinese technology, as Congress increasingly seeks to take a tough line against Beijing. Senators voted 68-30 to end debate on the USD 250 billion US Innovation and Competition Act of 2021, or USICA, and move nearer to a final vote on the legislation.

The desire for a hard line in dealings with China is one of the few truly bipartisan sentiments in the deeply divided US Congress, which is narrowly controlled by President Joe Biden’s fellow Democrats.

Senate Democratic Majority Leader Chuck Schumer, who co-wrote the USICA legislation, said the United States spends less than 1 percent of gross domestic product on basic scientific research, less than half of what China does. ”We have put ourselves in a very precarious position of potentially falling behind the rest of the world in the technologies and industries that will define the next century,” he said in Senate remarks urging support for the bill.

The Chinese embassy in Washington did not immediately respond to a request for comment on the legislation.

The exact timing of a final Senate vote was not clear, as lawmakers continued to debate next steps behind closed doors on Thursday evening. Once it passes the Senate, the bill must also pass the House of Representatives to be sent to the White House for Biden to sign into law.

The measure authorizes about USD 190 billion for provisions to strengthen US technology in general, plus USD 54 billion specifically to increase production of semiconductors, microchips and telecommunication equipment.

Also Read: Senate eyes R&D bill to counter China, bolster manufacturing

The legislation also seeks to counter Beijing’s growing global influence through diplomacy, by working with allies and increasing US involvement in international organizations after former Republican President Donald Trump pulled Washington out as part of his ”America First” agenda.

Also Read: Social spending, business tax hike drive $6 trillion Biden budget

As it considered the legislation, the Senate approved by 91-4 an amendment backed by Republican Senator Mike Crapo and Democratic Senator Ron Wyden to retaliate against what they consider China’s anti-competitive trade practices and bar products determined to have been produced using forced labor.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Senate eyes R&D bill to counter China, bolster manufacturing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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What started as a pragmatic effort to boost scientific research and development has morphed into sweeping Senate bill aimed at making the US more competitive with China and other countries, including USD 50 billion in emergency funds to shore up domestic computer chip manufacturing.

The American Innovation and Competition Act is key to President Joe Biden’s infrastructure plans and headed toward crucial votes late Thursday. It’s also a test of whether the split 50-50 Senate can accomplish bipartisan achievements at a time when there’s pressure on Democrats to change the rules to push past obstruction and gridlock.

Senators slogged through days of debates and amendments toward a possible final vote.

Sen. Maria Cantwell, D-Wash., the Commerce Committee chairwoman managing the debate for Democrats, said, I actually think we have gotten more mindshare with people about why this is important, right, because we had an open debate process.

The measure has enjoyed broad, bipartisan support, but became weighted down by the sheer scope of the effort. As the bill swelled to more than 1,000 pages actually, it’s a collection of bills Republicans threw up caution signs, and senators in both parties sought additions and changes.

A top Republican author, Sen. Todd Young of Indiana, characterized his underlying proposal the Endless Frontier Act he co-authored with Senate Majority Leader Chuck Schumer as part of the country’s history of innovation, like the moon landing or launch of the internet, that Washington needs to foster if America is to remain competitive.

It is not about beating China, Young said in a speech Thursday. He said it is about rising to the challenge posed by China to be a better version of ourselves.

Biden had included elements of the legislation as part of his big infrastructure plan, the American Jobs Act, making a similar case that the US needs to increase its investments to stay competitive with rivals, particularly China.

During a virtual meeting with CEOs, last month over the global computer chip shortage that has been disrupting supplies and sales of everyday goods — from cellphones to new cars Biden explained his plan to build the infrastructure of today.

Together, the massive innovation act would be one of the more comprehensive investments in US research and development in recent years as the country tries to bolster and rebuild home-state industries that have shifted overseas during the era of globalization.

Senators have tried to strike a balance in raising awareness about China’s growing influence without fanning divisive anti-Asian rhetoric, mindful that hate crimes against Asian Americans have spiked during the coronavirus pandemic.

At the same time, senators agreed to tack on amendments showing shifting attitudes over China’s handling of the COVID-19 outbreak. One would prevent federal funds for the Wuhan Institute of Virology amid a fresh investigation into the origins of the virus and possible connections to the lab’s research. The city registered some of the first virus cases.

The centerpiece of the bill is a USD 50 billion emergency allotment to the Commerce Department to stand up for semiconductor development and manufacturing through research and development and incentive programs previously authorized by Congress. They focus on the military, automakers, and other critical industries reliant on computer chips.

The US once manufactured far more chips than today, which some senators said put the US at risk of fluctuations in the global supply chain, as happened over the past year with shortages.

Also Read: Dell, HP say chip shortages will hit PC supplies this year

The Endless Frontier provision would authorize funding for the National Science Foundation, including the establishment of a Directorate for Technology and Innovation, as well as research and development funds and scholarships for students focused on science, technology, engineering and math programs.

Other measures spell out national security concerns and target money laundering schemes or cyberattacks by entities on behalf of the government of China. There are also buy America provisions for infrastructure projects in the US.

Taken together, the innovation act is a collection of bills that span several Senate committees. It has been a priority for Schumer, the Democratic leader who has long advocated a tougher approach to China. He and Young struck up a conversation about teaming up on a bill during workouts at the Senate gym, lawmakers said.

It’s unclear whether the measure would find support in the Democratic-led House.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Apple agrees to testify before US Senate on app store antitrust concerns

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A senior Apple Inc executive has agreed to testify before the US Senate on competition issues related to mobile app stores, days after panel leaders criticized the company for refusing to appear. The company said in a letter sent to senators, seen by Reuters, that Chief Compliance Officer Kyle Andeer will be available to testify at an April 21 hearing held by part of the Senate Judiciary Committee.

App makers have long complained that mandatory revenue sharing payments and strict inclusion rules set by Apple’s App Store for iPhones and iPads, along with Google’s Play store for Android devices, amount to anti-competitive behavior.

On Friday, US Senators Amy Klobuchar, a Democrat, and Mike Lee, a Republican, sent a letter to Apple Chief Executive Tim Cook calling it ”unacceptable” the company was refusing to send a witness. The pair are leaders of the Senate Judiciary panel’s subcommittee on competition policy and antitrust.

Google has already agreed to testify at the hearing, according to Klobuchar’s spokeswoman.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow