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U.S. hearings on China’s competition said research funding lags behind Reuters

© Reuters.File Photo: US Senator Maria Cantwell (D-WA) speaks at a press conference

(Correct the first paragraph, add the missing word, and correct the language)

By David Brunnstrom and Michael Martina

Washington (Reuters)-US investment in R & D has reached its lowest level in decades while soaring in other parts of the world, the head of the US Senate proposes to help the US Increase competitiveness with China, which warned at a hearing on subsidies to the technology industry.

Maria Cantwell, chairman of the Senate Trade Commission, told the commission Wednesday that the proposed “endless frontier law” had stimulated a great deal of debate about America’s competitiveness.

Federal investment in R & D is the lowest in 45 years, measured against GDP, Kantwell said.

“This is because international competition is intensifying and other countries are ready to challenge our position in the global innovation phase.”

Republican Senator Roger Wicker, a ranking member of the Commission, said the bill’s intent seemed to help the United States compete with China, but the United States is a “top-down program” of research and investment. He said he would not beat China by imitating. And government subsidies.

“Strategic investment in technology and supply chains is important, but simply spending money on problems won’t win,” Wicker said. “If the recipient of this concept’s funding lacks the ability and ability to carry out practically useful R & D activities, it can actually do harm.”

The Endless Frontier Act was first proposed in 2020, demanding $ 110 billion over five years to advance US technological efforts, co-sponsored by Senate Democratic leader Chuck Schumer and Republican Senator Todd Young.

investment plan

Schumer also wants to move legislation to boost US semiconductor production. Parliamentary aides said both proposals could add up to $ 200 billion.

President Joe Biden has proposed a drastic infrastructure investment plan that can fund semiconductors, but it is unclear how various financing initiatives will be resolved between government and Congress.

Biden has also sought a solution to the chip shortage that is putting pressure on US automakers competing with the vast consumer electronics industry for chip supply.

Several U.S. technology industry groups wrote to Congress and White House officials on Wednesday to support old chips as part of the budget for another plan to boost the U.S. semiconductor supply chain, the CHIPS for America Act. He demanded that he not secure new semiconductor manufacturing capacity.

The letter shows that the rift between the two US industries is widening, and tech companies argue that the reserved capacity of legacy chips used by automakers will distort the market.

“Competition between other US chip consuming industries for this artificially tightened chip supply will lead to higher costs for companies and their customers, including US taxpayers,” the Information Technology Industry Council said. A letter from the high-tech lobby, including, said.

(This story corrects the first paragraph, adds missing words, and corrects the language.)

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U.S. hearings on China’s competition said research funding lags behind Reuters

Source link U.S. hearings on China’s competition said research funding lags behind Reuters

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