Cantwell Lays Out Expectations for Committee Conferees on China Bill

Expect members of the Senate Commerce, Finance, Homeland Security and Foreign Affairs committees to be named as China bill conferees (see 2203220074), Senate Commerce Committee Chair Maria Cantwell, D-Wash., told reporters after Wednesday’s chips hearing.

Commerce suggested leadership select party leaders of the relevant committees for conferencing, said Cantwell. But not every committee has expansive jurisdiction, so some additional members might be chosen from certain committees like Commerce, said Cantwell, noting leaders could name rank and file members to the conference.

The issues for conference aren’t “that complicated,” but the legislation crosses several jurisdictions, she said. Ranking member Roger Wicker, R-Miss., Democrats and the Senate as a whole are very much in sync after passing the upper chamber’s version of the China package, but House counterparts might view the legislation differently, she said.

The Senate voted 66-31 Wednesday on the motion to proceed to consideration of the House-passed America Creating Opportunities for Manufacturing, Pre-Eminence in Technology and Economic Strength Act (HR-4521). Sen. Bernie Sanders, I-Vt., voted no. Sens. Jeanne Shaheen, D-N.H.; Bob Casey, D-Pa.; and Joe Manchin, D-W.Va., didn’t vote. Cantwell said attendance and COVID-19 could stand in the way of the Democratic agenda, including the confirmation of FCC nominee Gigi Sohn and FTC nominee Alvaro Bedoya (see 2203220058). Shaheen is recovering from COVID-19. Cantwell told reporters the timing of discharge votes for the nominees remains unclear.

Wednesday’s vote on the China package was another hurdle in a series of “procedural hoops” the Senate must jump through in order to move to conference, Senate Majority Leader Chuck Schumer, D-N.Y., said on the floor Wednesday. Indiana's Sen. Todd Young, lead Republican sponsor, was asked about Schumer’s failed attempt to hotline the process last week and Republican objections. There was recognition from some colleagues who wanted to “say some words, which is not uncommon in the Senate,” said Young. “So we’re going to do it the hard way, and I anticipate we’ll go to conference before the end of the work period.”

Commerce’s hearing with Intel CEO Pat Gelsinger, Micron Technology CEO Sanjay Mehrotra, Lam Research CEO Tim Archer and Paccar CEO Preston Feight (see 2203170068) was the most important on Capitol Hill Wednesday, Wicker said during opening remarks. The ranking member said he’s confident a “fair conference process” will produce landmark legislation for semiconductor generation, which is the “lifeblood of modern industrial production.” He noted the U.S. share of global chip production has dropped from 40% in the 1990s to 12% today. Gelsinger attributed the trend to aggressive policies and strong capital incentives provided by governments in Asia, namely, China, Taiwan, Japan and Korea.

There’s a 35%-45% cost difference for manufacturing in the U.S. versus Asia, said Mehrotra: The biggest barrier is the cost of building and operating fabrication plants, and the Chips Act, which both chambers included in their packages, would help bridge that gap. Young highlighted key priorities in the Senate version: a new National Science Foundation tech directorate, regional tech hubs and the Chips Act.