Democratic-led House passes China competition bill with funding for chipmakers

The House passed a China competition bill on Friday intended to improve the country's ability to produce semiconductors and make the nation less reliant on China.

The measure aims, more specifically, to shore up strained supply chains and bolster international alliances.

The bill comes amid a global shortage of computer chips that has resulted in skyrocketing prices for automobiles, electronics and other goods that use them.

However, Republicans have said the measure is "toothless" and fails to hold the country, run by the Chinese Communist Party,  accountable for economic and human rights violations, the Associated Press reports.

Republicans also argue the measure comes too late to slow record inflation under Democrat President Biden's term and does little to challenge China's economic position. GOP leaders have said the bill wastes taxpayer dollars on environmental initiatives and other unnecessary programs, such as $8 billion for a fund that helps developing countries adjust to climate change.

The nearly 3,000-page bill includes massive investments designed to boost semiconductor manufacturing in the U.S., including roughly $52 billion in grants and subsidies to help the semiconductor industry and $45 billion to strengthen supply chains for high-tech products, according to an official summary of the bill.

A budget watchdog group, the Committee for a Responsible Federal Budget, said the cost of the full bill is unknown. 

The 50-50 Senate passed their own version of the bill over 7 months ago.