Biden discusses China's chip supply, says he expects talks with Xi this week
President Joe Biden said on Monday that he expects to have talks with Chinese President Xi Jinping, as Washington seeks to ease the US dependence on Chinese-made chips.
Biden met virtually on Monday with the chief executives of Lockheed Martin, Medtronic and Cummins along with labour leaders as part of the administration's push for legislation to boost the U.S. semiconductor industry.
The chips bill aims to ease a shortage that has disrupted production in industries including automobiles, consumer electronics, medical equipment and high-tech weapons.
It is part of a broad effort across the government to push back against an ascendant China and ease supply-chain problems by decreasing U.S. companies' reliance on foreign-made semiconductors.
Following the meeting, Biden said that it is still his expectation that he will speak with his Chinese counterpart, Xi Jinping, this week.
The bill includes about $52 billion in subsidies for U.S. semiconductor production, as well as a new, four-year 25% tax credit to encourage companies to build U.S. semiconductor plants. The tax credit is estimated to be worth about $24 billion. There are other provisions, including a $1 billion grant program for "persistently distressed communities."
The Senate approved a bipartisan $250 billion bill boosting spending on technology research and development in June 2021, while the House passed its own version in February.