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Politico reported on Thursday that US Senate Majority Leader Chuck Schumer and Republican Senator John Cornyn are pushing hard for a ban on federal contracts with Chinese chipmakers, citing three people familiar with the situation. According to the story, the senators want their amendment, which prohibits federal access to Chinese semiconductor products and services, to be included in the final version of this year's National Defense Authorization Act (NDAA).
According to Politico, the bill would strengthen Section 889 rules that already ban government agencies from doing business with Chinese telecommunications firms or contractors that employ their technologies.
According to the article, Schumer and Cornyn had their plan included to the Senate NDAA last month in the October management package and are now seeking to persuade their colleagues.
Before it can be forwarded to the White House for US President Joe Biden to sign into law, the fiscal 2023 NDAA must first pass the Senate and House of Representatives later this year.
Last month, the Biden administration issued a broad set of export limitations, including a move to bar China from purchasing specific semiconductor chips manufactured anywhere in the world using US equipment.
On August 9, Biden signed a historic bill providing $52.7 billion (approximately Rs. 430 crore) in subsidies for US semiconductor production and research, as well as bolstering efforts to make the US more competitive with China's science and technology efforts.
Biden praised chip firms' commitments at the time, despite the fact that it is unknown when the US Commerce Department will create standards for vetting grant decisions and how long it will take to fund projects.
The measure authorises $200 billion (about Rs. 16,34,700 crore) over ten years to strengthen US scientific research in order to compete with China. To fund such investments, Congress would still need to adopt separate appropriations legislation.
