This is the White House and Congress making a statement that, in order to take on China, the U.S. must focus on itself.
So, first, the White House critical supply chain assessment identifies four main areas of focus. They start with semiconductors, then batteries, as well as critical minerals. Think about rare earths that end up in cell phones and pharmaceuticals as well.
These are many of Beijing’s priorities. The administration says that it’s trying to address the vulnerabilities in supply chains, many of which COVID exposed, and also strengthen U.S. resilience.
And then, in the Senate, as you said, Stephanie, the U.S. Innovation and Competition Act, one of the largest industrial bills in U.S. history. It invests tens of billions of dollars in what are called key technology-focused areas, basically reenergizing high-tech research and development.
It also boosts semiconductor manufacturing. And it makes some diplomatic statements, a ban on U.S. diplomats going to the Beijing 2022 Olympics, and also another call for a COVID origins investigations.
The sum of the parts today, Stephanie, once again an attempt to make the U.S. stronger in order to take China on.