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AFL-CIO Says Lawmakers Should Remove ‘Pro-China’ Provisions From Chips Bill | Technology News



WASHINGTON (Reuters) – The largest U.S. labor organization said on Monday it wants lawmakers negotiating a measure to boost funding for semiconductor chips production and U.S. competitiveness to remove “pro-China provisions.”

The AFL-CIO trade federation, representing 12.5 million workers, took aim at the Senate version of the bill in a letter to lawmakers, saying it “would benefit China’s economy more than ours by lowering tariffs and continuing our over-reliance on China in key sectors.”

A persistent industry-wide shortage of chips has disrupted production in the automotive and electronics industries, forcing some firms to scale back production, and there have been growing calls to decrease reliance on other countries for semiconductors.

The AFL-CIO calls for the removal of several trade provisions in the Senate version, including reforming a tariff exclusion process and granting tariff-free access for Chinese personal protective equipment, medicines and other medical goods.

Last week, Commerce Secretary Gina Raimondo said the Chinese government opposes ramping up U.S. semiconductor manufacturing because it would give the United States more of a competitive punch.

The U.S Chamber of Commerce backs the Senate trade provisions, including its tariff exclusion process reforms and reinstating previously granted expired tariff exclusions. It urged rejecting “misguided and problematic provisions” in the House version.

Former President Donald Trump’s administration imposed “Section 301” tariffs on an initially estimated $370 billion in annual Chinese imports. In March, the Biden administration reinstated some tariff exclusions.

(Reporting by David Shepardson; Editing by Leslie Adler)

Copyright 2022 Thomson Reuters.

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