{"id":1926035,"date":"2023-05-07T05:27:40","date_gmt":"2023-05-07T09:27:40","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/lawmakers-tout-effect-of-chips-act-in-u-s-competition-with-china\/"},"modified":"2023-05-07T05:30:13","modified_gmt":"2023-05-07T09:30:13","slug":"lawmakers-tout-effect-of-chips-act-in-u-s-competition-with-china","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/lawmakers-tout-effect-of-chips-act-in-u-s-competition-with-china\/","title":{"rendered":"Lawmakers praise CHIPs Act&#8217;s impact on US-China competition."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Flawmakers-tout-effect-of-chips-act-in-u-s-competition-with-china%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1926035&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Boosting Domestic Production of Semiconductors: The CHIPS Act<\/h2>\n<p>Last August, President Joe Biden signed the Chips and Science (or CHIPS) Act into law, promising over $50 billion to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/despite-leadership-opposition-24-republicans-help-send-chips-package-to-bidens-desk\/\" title=\"Despite Leadership Opposition, 24 Republicans Help Send CHIPS Package To Biden\u2019s Desk\">domestic semiconductor manufacturers<\/a> to boost domestic production and \u201ccounter China.\u201d Pivotal in drafting and negotiating on behalf of the law was Sen. Mark Kelly (D-Ariz.), who beat out Republican candidate Blake Masters in the 2022 midterm elections.<\/p>\n<h3>Communist China or American Free Enterprise?<\/h3>\n<p>\u201cAfter over a year of hard work, our <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/lawmakers-tout-effect-of-chips-act-in-us-competition-with-china\/\" title=\"US lawmakers highlight CHIPs Act's impact on competition with China.\">landmark microchip manufacturing bill<\/a> is now law,\u201d the senator said in a statement after the bill\u2019s passage last year, adding that the measure would boost Arizona\u2019s competitiveness in the chip industry and be a \u201cbig loss for China.\u201d<\/p>\n<p>However, one economist argued that the policy is actually more aligned with the values of communist China than those of American free enterprise.<\/p>\n<p>\u201cThe CHIPS Act is just another example of top-down industrial planning that is more reminiscent of Maoist China than an ostensible market economy,\u201d Mises Institute senior fellow Robert Murphy told The Epoch Times.<\/p>\n<h3>Disincentivizing Innovation?<\/h3>\n<p>Another concern among free-market economists is that by flushing historically uncompetitive American firms with new capital, the law will disincentivize innovation by artificially propping up the revenue of domestic chip companies without their needing to improve the product. When asked about this, Kelly, a former astronaut, argued corporate profits are frequently reinvested into research and development, so this should be no different.<\/p>\n<h3>Geopolitical Concerns<\/h3>\n<p>Sen. Todd Young (R-Ind.), who similarly stressed the geopolitical concerns that were the impetus behind the bill\u2019s passage.<\/p>\n<p>\u201cWe\u2019re in a global competition here,\u201d he said. \u201cAs it relates to the highest-end chips, there\u2019s a national security justification for having domestic supply.\u201d<\/p>\n<h3>Implementation Strategy<\/h3>\n<p>Murphy acknowledged that parts of the law are not all bad but still disagreed with the implementation strategy, saying it leaves too much discretion to the federal government.<\/p>\n<p>\u201cThere are some individual elements that are defensible\u2014such as providing investment tax credits\u2014but even there, it would make more sense to give a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/lawmakers-tout-effect-of-chips-act-in-u-s-competition-with-china\/\" title=\"Lawmakers praise CHIPs Act's impact on US-China competition.\">broad-based tax rate reduction<\/a> on all businesses, not targeted breaks where the government picks politically favored firms and techniques.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last August, President Joe Biden signed the Chips and Science (or CHIPS) Act into law, promising over $50 billion to domestic semiconductor manufacturers to boost domestic production and \u201ccounter China.\u201d Pivotal in drafting and negotiating on behalf of the law was Sen. Mark Kelly (D-Ariz.), who beat out Republican candidate Blake Masters in the 2022<\/p>\n","protected":false},"author":1,"featured_media":1926036,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[18822,13785,9503,5663,3673,8705,22779],"class_list":["post-1926035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-acts","tag-chips","tag-competition","tag-impact","tag-lawmakers","tag-praise","tag-us-china"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1926035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1926035"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1926035\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1926036"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1926035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1926035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1926035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}