Senate Passes Amended China Bill; Young Stresses Urgency

Autonomous vehicles aren’t possible without a steady supply of microchips, Senate Homeland Security Committee Chairman Gary Peters, D-Mich., said Monday during a field hearing in Detroit on China package implications for the auto industry (see 2203230065). Peters joined a chorus of legislators pushing for Congress to move chip legislation, including Senate Commerce Committee Chair Maria Cantwell, D-Wash.

The U.S. relies too much on foreign, unstable suppliers, and the auto industry is heavily reliant on microchips, Peters said on the importance of holding the hearing in Detroit.

Congress should maintain the urgency in passing its China package, Sen. Todd Young, R-Ind., tweeted Tuesday, the day after the Senate sent the bill back to the House, one step closer to formal conference. The Senate voted 68-28 in passing HR-4521, the America Competes Act, as amended. Sen. Bernie Sanders, I-Vt., voted no. The House is expected to reject the substituted legislation and request a conference to reconcile differences, said the office for Senate Commerce Committee Chair Maria Cantwell, D-Wash.

Speaking from the floor Thursday, Sanders cited the bill’s $53 billion in “corporate welfare” for the “highly profitable” microchip industry with “no protections for the American taxpayer.” He requested a vote on a provision on those protections and a provision to eliminate $10 billion included in the bill for Blue Origin, the space company owned by Jeff Bezos (see 2105270002). Cantwell, speaking from the floor Thursday, said Congress needs to stop wasting time and get to conference.

The China-related content of the amended HR-4521 that cleared the Senate "plays up the 'China threat' theory and advocates strategic competition with China in disregard of facts," said a Chinese Foreign Affairs Ministry spokesperson Tuesday. "It is entrenched in the Cold-War and zero-sum game mentality and runs counter to the common aspiration of people from all sectors in China and the U.S. to strengthen exchanges and cooperation. China is firmly opposed to this and will firmly defend its own interests."

Peters hosted his hearing as chairman of the Senate Commerce Committee’s Surface Transportation Subcommittee. No other panel members spoke or questioned witnesses during the hearing. It would be “devastating” if the legislative process ends in a roadblock for Michigan workers getting “fair wages,” said UAW Region 1D Director Steve Dawes.

It’s inevitable cars will one day be autonomous, said Peters: The question is what’s the role of semiconductors. The core mission is reliable, quality chips, said Jay Rathert, KLA senior director-strategic partnerships. Public policy needs to keep pace with global investment in order for the U.S. to maintain a competitive advantage with autonomous vehicles, said Alliance for Automotive Innovators Vice President Garrick Francis.

House Democrats spoke at a separate event Monday about the need to pass federal privacy legislation. House Consumer Protection Subcommittee Chair Jan Schakowsky, D-Ill., talked about the need to ensure Big Tech lives up to its promises to consumers, and the need to address discriminatory algorithms and surveillance advertising. It’s clear the days of self-regulation must come to an end, Schakowsky said during a Software and Information Industry Association livestream. Since the House Commerce Committee released a staff draft on privacy, states have taken the lead in passing legislation, she said.

Mass data collection, often involving minute details, comes with benefits but also profound risk, said Rep. Zoe Lofgren, D-Calif. There’s little visibility and even less control over data collection because companies have no oversight and no incentive to protect consumer data, she said. She referenced her legislation (see 2202160055) with Rep. Anna Eshoo, D-Calif., saying a national standard needs to give consumers control.

Officials from the executive branch and the National Institute of Standards and Technology promoted parallel efforts on artificial intelligence and privacy. The White House Office of Science and Technology Policy announced an AI bill of rights in October to promote privacy and equity. There needs to be concrete ways and rules of the road to protect consumers from the negative side effects of these technologies, said OSTP Assistant Director-Data and Democracy Sorelle Friedler, a former Alphabet employee. NIST’s AI risk framework effort will provide practical guidance that can inform White House and industry efforts, said NIST IT Lab Chief of Staff Elham Tabassi.