The US Inflation Reduction Act - why it's about competition with China

August 25, 2022

Legislative action to compete with China seems to have defined the summer in Washington this year. The CHIPS and Science Act aims to revive semiconductor manufacturing in the United States to address the risks that come from having so much manufacturing capacity concentrated in Taiwan and the gradual rise of China’s own chip production abilities. And last week, after many twists and turns, Democrats in Congress finally succeeded in passing a bill tackling climate change. The Inflation Reduction Act (IRA) contains many provisions, including on healthcare and corporate taxes, but its measures to foster decarbonization and support clean energy technologies make it the most ambitious climate bill ever to be passed in the United States. Some models estimate it could cause greenhouse gas emissions in the United States to fall by over 40 percent by 2030.

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Our sincere thanks to Ilaria Mazzocco, Fellow, Trustee Chair in Chinese Business and Economics at the CSIS for sharing this article.