AFL-CIO endorses House Democrats’ China competition bill

The AFL-CIO on Monday endorsed the America Competes Act, a House bill aimed at helping the U.S. compete with China by boosting domestic semiconductor production and investing in scientific research and development.

The labor federation, which represents 12.5 million workers, praised the legislation’s “important provisions that will help curb China’s aggressive non-market trade distortions that have put downward pressure on U.S. production, employment and wages.”

“The AFL-CIO stands ready to fight for these priorities, to level the playing field against unfair trade practices and to improve opportunities for America’s hard-working families,” William Samuel, the federation’s government affairs director, wrote in a letter to lawmakers Monday. “We urge you to support this legislation and fight for the enactment of its provisions into law.”

The bill would invest $52 billion in U.S. semiconductor manufacturing in addition funding for research and development and domestic supply chain resilience. House Democrats unveiled the legislation last week as their answer to the Senate’s bipartisan China competition bill passed in June. 

The AFL-CIO urged lawmakers to support the bill’s trade provisions aimed at challenging what it sees as anti-competitive trade practices by the Chinese government such as dumping of heavily subsidized imports. The labor federation indicated that House Democrats’ bill has stronger trade provisions than the bipartisan Senate-passed bill.

House and Senate leaders will have to resolve differences between the two bills before getting final legislation to President BidenJoe BidenOvernight Health Care — Moderna’s COVID-19 vaccine approved Overnight Defense & National Security — US, Russian officials face off at meeting Biden to relaunch ‘cancer moonshot’ effort at Wednesday event MORE’s desk. The House package leaves out roughly $200 billion that the Senate included to boost U.S. scientific research and technological innovation.

Biden on Tuesday praised both bills for providing “transformational investments in our industrial base and research and development” that will give a boost to middle-class families. 

The bill has the support of high-profile labor unions and business groups. The National Association of Manufacturers last week said that lawmakers “can feel confident that supporting this bill means supporting the future of manufacturing in America.”