US Congress to hold hearing on US tech research
The US Senate Commerce Committee will today hold a hearing about the Endless Frontier Act.
The proposed bipartisan bill strives to enhance the US’ technological prowess in order to strategically compete against growing Chinese technological innovation, which poses a direct challenge to American products in the international supply chain. Today’s meeting is a critical platform for committee members to discuss possible measures to boost and revolutionise technological investments in the US with the goal of preventing China from securing the upper hand in the digital market.
In the long-term, expect reduced collaboration between Chinese and American high-tech firms, as new federal regulations concerning US digital companies will likely be less lenient. Although some US tech companies, such as Apple and Microsoft, have large-scale deals with Chinese tech companies such as Huawei, they will struggle to gain approval under the Biden administration. Considering that the Democrats will implement restrictions on US tech firms conducting business with China, a slowdown in bilateral gross trade between Washington and Beijing, especially in the tech industry, is an increasingly likely development. In response, China will likely withdraw from its “wait and see” approach and impose sanctions on US tech companies.
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