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Washington’s next big legislative push could be aimed at China, in a measure that may bring Democrats and Republicans together, analysts say.
With President Joe Biden’s signature now on the $1.9 trillion COVID-relief bill, focus is turning to what the next major bill will be. Biden will likely preview some of his priorities in a prime-time address Thursday night, including infrastructure and clean energy. But a China-targeted bill could come first, say analysts at Beacon Policy Advisors.
“There appears to be an opening to first pass a bill that could serve as a legislative sorbet of sorts,” the analysts said in a note on Thursday.
Late last month, Senate Majority Leader Chuck Schumer said the Senate would in the spring take up a bill aimed at boosting the U.S.’s economic competitiveness with China. The New York Democrat said he wanted it to be bipartisan and that it would incorporate legislation he sponsored with Sen. Todd Young, an Indiana Republican.
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As MarketWatch reported, the measure aims to rename the National Science Foundation and charge it with ways to advance American high technology in areas including advanced manufacturing and high-performance computing. Schumer also said the U.S. couldn’t be out-competed by China in semiconductor SMH, +4.34% manufacturing.
Read: Schumer says Senate will work on bill to ease semiconductor shortage, take on China
Key Democratic committees are speeding up work on the package, according to a Washington Post report, to have it ready for a vote in April.
Biden entered office pledging to work with Republicans. Not a single Republican in the House or Senate voted for the COVID relief plan, however.
That could change with a China bill.
“You want a truly bipartisan bill?” asked Greg Valliere of AGF Investments in a note on Thursday. “Then focus on China,” said Valliere, the firm’s chief U.S. policy strategist. “There’s growing support in Congress for legislation that would challenge China’s economic clout.”
Beacon’s analysts said a China bill could move through the Senate while lawmakers develop infrastructure plans, which are likely to be more partisan.
“Combatting China is one of the rare popular bipartisan points of agreement and Schumer’s current proposal could combine that goal while still being framed as a job-creation bill,” the analysts wrote.
Asked if the Biden administration was coordinating with Senate Democrats on China legislation, White House press secretary Jen Psaki said the president would be “happy to discuss it” with Schumer. But she added that she expects Biden’s agenda going forward will “reflect the Build Back Better agenda” he discussed during his White House run.
Former President Donald Trump’s adminstration slapped import tariffs on a wide array of Chinese goods, igniting a major trade war. Biden has signaled those tariffs will remain for now.
Biden and Chinese President Xi Jinping spoke in February about trade policy and other matters. Biden said afterwards that the U.S. would work with China when it benefits the American people, while Xi reportedly said the two nations should cooperate on spurring a global economic recovery among other issues.
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