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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe Government Is Shutting Down Because Elon Musk Has Factories in China
https://prospect.org/politics/2024-12-20-government-shutting-down-elon-musk-factories-china/In a sense, Donald Trump is picking up where he left off. Most of us remember the last official act of his presidency as the Capitol Riot, but just before that, just before Christmas 2020, he inserted himself late into a government funding fight that he had been previously disinterested in. Congress had agreed to a bipartisan year-end omnibus spending bill that included the first COVID relief measures in nine months. The bills were already passed, until Trump decided that some of the spending sounded funny, and individuals should get $2,000 checks instead of the $600 on offer. He refused to sign the omnibus without them.
Within hours, Democrats wrote an expanded checks bill and passed it through the House, but Mitch McConnell refused to let it advance, and Trump grudgingly signed the omnibus anyway, climbing all the way down. The $2,000 checks became an issue in two special elections in Georgia that Republicans lost. The road to the Biden agenda went through Trumps anger-fueled, failed gambit to renegotiate a congressional deal after it was complete.
Almost four years to the day, were back here again. But this time, Trump is a side player in the show. He and his transition team reportedly had no problem with the 2024 version of a year-end spending bill until this week. Then Elon Musk starting posting into a frenzy about how a perfectly normal bipartisan agreement represented a total betrayal, lying about the contents in the process. Trump had to be roused to back up his co-president, getting House Speaker Mike Johnson (R-LA) to construct a partisan solution while inserting an eleventh-hour, two-year suspension of the debt limit to prevent the Republican trifecta from having to deal with that nuisance in the next Congress.
The remaining gasps of the Tea Party right, who see the debt limit only as an opportunity to force spending cuts, refused to go along with that piece, with 38 of them opposing the Johnson bill on the floor yesterday. Democrats werent about to vote for a bill they had no say in (if the offer was to eliminate the debt limit for all time, they should go for it, but this is not that), and it failed. House Republicans are vowing to try again today, but they will likely need a two-thirds vote on anything today (its procedurally complicated; suffice to say that they cant wait for the Rules Committee to report out a rule, forcing a vote under suspension of those rules). That means any bill will need Democratic votes, and nothing suggests that there are any negotiations with Democrats afoot. So the government will shut down at midnight.
*snip*
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The Government Is Shutting Down Because Elon Musk Has Factories in China (Original Post)
Nevilledog
Yesterday
OP
SheltieLover
(60,129 posts)1. Cue magat outrage at Joe, Hillary's emails, Hunter's laptop
Anything but the RAPEubliCONS responsible.
Ps - I'm sure pootin is thrilled.
2naSalit
(93,316 posts)5. The usual suspects. NT
SheltieLover
(60,129 posts)6. Always!
They are uneducable, so the story never changes.
Blue_Tires
(56,576 posts)2. Remember the good old days
When "conflicts of interest" was still a thing?
Just another bit of GOP lawlessness that the media has completely normalized...
Solly Mack
(93,185 posts)3. K&R
MadLinguist
(850 posts)4. the kahuna in China that Elmo wanted taken out of the bill
Kleptocracy spelled out loud and proud
The measure at issue is known as the outbound investment provision. We have heard for years about the problem of manufacturing businesses shipping jobs overseas to China, with its low worker wages and low environmental standards. China typically forces businesses wanting to locate factories in its country to transfer their technology and intellectual property to Chinese firms, which can then use that to undercut competitors in global markets, with state support.
Congress has been working itself into a lather about China for years now, and they finally came up with a way to deal with this issue. Sens. John Cornyn (R-TX) and Bob Casey (D-PA) have the flagship bill, which would either prohibit U.S. companies from investing in sensitive technologies in China, including semiconductors and artificial intelligence, or set up a broad notification regime around it.
The bill would add some reporting requirements and enhanced reviews as well; in general, it expands restrictions that the Treasury Department has already put forward in regulatory rules. Codifying those rules into statute means that they cannot be changed by successive administrations.
Cornyn-Casey passed the Senate last year, and after about a year of legislative wrangling, a final outbound investment package made it into the year-end bill. Were taking a necessary step to safeguard American innovation against bad actors and ensure our lasting dominance on the world stage, Cornyn said in a statement.
Funny story: Elon Musks car company has a significant amount of, well, outbound investment. A Tesla Gigafactory in Shanghai opened in 2019; maybe a quarter of the companys revenue comes from China. Musk has endorsed building a second Tesla factory in China, where his grip on the electric-vehicle market has completely loosened amid domestic competition. He is working with the Chinese government to bring Full Self-Driving technology to China, in other words, importing a technology that may be seen as sensitive. Musk has battery and solar panel factories that are not yet in China, but he may want them there in the future.
You can argue about whether the U.S. should be restricting investment in China. But its incontrovertible that a billionaire who has a bunch of investments in China and wants to make more all of a sudden disrupted a normal congressional process that was going to restrict that investment with a bunch of lies from his media platform. And lo and behold, when the new funding bill emerged, the outbound investment feature was dropped. In fact, all traces of provisions related to China were removed from the bill.
Congress has been working itself into a lather about China for years now, and they finally came up with a way to deal with this issue. Sens. John Cornyn (R-TX) and Bob Casey (D-PA) have the flagship bill, which would either prohibit U.S. companies from investing in sensitive technologies in China, including semiconductors and artificial intelligence, or set up a broad notification regime around it.
The bill would add some reporting requirements and enhanced reviews as well; in general, it expands restrictions that the Treasury Department has already put forward in regulatory rules. Codifying those rules into statute means that they cannot be changed by successive administrations.
Cornyn-Casey passed the Senate last year, and after about a year of legislative wrangling, a final outbound investment package made it into the year-end bill. Were taking a necessary step to safeguard American innovation against bad actors and ensure our lasting dominance on the world stage, Cornyn said in a statement.
Funny story: Elon Musks car company has a significant amount of, well, outbound investment. A Tesla Gigafactory in Shanghai opened in 2019; maybe a quarter of the companys revenue comes from China. Musk has endorsed building a second Tesla factory in China, where his grip on the electric-vehicle market has completely loosened amid domestic competition. He is working with the Chinese government to bring Full Self-Driving technology to China, in other words, importing a technology that may be seen as sensitive. Musk has battery and solar panel factories that are not yet in China, but he may want them there in the future.
You can argue about whether the U.S. should be restricting investment in China. But its incontrovertible that a billionaire who has a bunch of investments in China and wants to make more all of a sudden disrupted a normal congressional process that was going to restrict that investment with a bunch of lies from his media platform. And lo and behold, when the new funding bill emerged, the outbound investment feature was dropped. In fact, all traces of provisions related to China were removed from the bill.