Young, Matsui Optimistic About China Bill Conference Plans

Senate Majority Leader Chuck Schumer of New York filed cloture Thursday on the motion to proceed to the House-passed America Competes Act (HR-4521) (see 2203170068). He tried to hotline a time agreement to fast track final passage, but Republicans objected, setting up a potentially weekslong series of procedural hurdles before moving to conference (see 2203170068). He cited a “small band of Republicans” standing in the way of “quick action” last week on the floor.

The Senate passed the U.S. Innovation and Competition Act (USICA) (S-1260) in June, but the House never officially received the bill. Several provisions in the Senate bill would trigger a blue slip in the House, allowing members of the lower chamber to enforce a rule that all revenue provisions must originate in the House. To go to conference requires an official Senate position. Schumer is expected to file a substitute amendment, and after final passage, the bill would go back to the House. Then the lower chamber could officially disagree with the Senate’s position and the sides can move to conference. Schumer has options for streamlining various cloture votes required to get the bill sent to the House this week. The Senate was scheduled to vote at 5:30 p.m. Monday on cloture on the motion to proceed to the bill. The House returns on March 28.

Senate leadership made clear it wants an initial agreement on the conference structure before the end of the month, said Matsui during a Commerce Department livestream on Monday: “That’s a good first step.” Young said he’s “excited” to move forward this week and be “in a position to start a formal conference negotiation with the House before the end of the work period.” The process should be open with input from all colleagues through regular order, he said: Bipartisan effort is the “only way” to pass legislation in the Senate. He noted Republican frustration about the process for passage in the House, which they say has been one-sided.

Commerce Secretary Gina Raimondo urged Congress to “move swiftly” and iron out areas of disagreement to get a law to President Joe Biden’s desk. The law is essential to national security and outcompeting China, she said, calling the chips shortage a “dire” situation. China leads the U.S. in chips production, which is unacceptable from an economic and national security standpoint, she said.

Most of the bill language has agreement, but a fraction requires “threading the needle,” said Matsui: There’s urgency because passing legislation gets more difficult the closer Congress gets to election. She highlighted the importance of starting a formal conference. There will need to be “principled concessions” to pass a new law, said Young.

Raimondo noted her department is working with more than 30 countries on export controls and various methods for denying Russia access to chip supplies. The war in Ukraine made clear the U.S. needs to reduce its reliance on China for chip supplies, said former Deputy Administrator for the U.S. Agency for International Development Bonnie Glick. The export controls are “working well” but not perfectly, she said. Bill reconciliation should focus on export controls to combat intellectual property theft, shoring up supply chains, screening foreign investment and workforce training, said former National Security Adviser H.R. McMaster. This is about stopping China from holding the U.S. hostage through the export of chips, said former Deputy National Security Adviser Matthew Pottinger.