Republican Ohio Sen. J.D. Vance challenged U.S. Commerce Secretary Gina Raimondo during a Wednesday hearing, asking her whether diversity requirements make U.S. companies uncompetitive.
Drawing a comparison between the U.S. and China, Vance pointed out that companies looking to set up in China benefit from cheap labor, significant subsidies, and a government that appears eager to collaborate. In contrast, he argued, the U.S. offers minimal financial incentives and “a human resources statement that looks like it was written by a 22-year-old gender studies graduate of Harvard or Yale.”
“Why would you locate your facility in the United States of America when you get a human resources lecture from us, but from China you get a whole lot of money and a whole lot of facilitation for your business?” Vance remarked. “I’m curious where would you locate the facility?”
Senator @JDVance1 pops off in questioning Commerce Secretary Gina Raimondo:
“Think about this from the perspective of a company that is thinking about locating a chip fabrication facility in this country or in China.
From China they get cheap labor, massive subsidies, and a… pic.twitter.com/4Wq6RYYTIN
— Townhall.com (@townhallcom) October 4, 2023
Raimondo responded by citing her interactions with chief executive officers of American businesses who told her China was “becoming increasingly uninvestable.” She added that she would set up her chip manufacturing company in the U.S. given the precariousness of the economic situation in China. (RELATED: Chinese Chip Company Ramps Up Production Despite US Sanctions: REPORT)
“I agree these companies should locate their business in the United States. But we have to be careful — the reason that China has become uninvestable is because it’s very, very hard to get our money out,” Vance stated.
The senator added that any bipartisan legislation that directs funds to American manufacturing is “extremely counterproductive” if companies are required to comply with diversity requirements before being given access to funding.