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Xinhua News Agency, Washington, August 16 (Reporters Xiong Maoling and Xu Chao) The Financial Times recently reported that about 40% of major manufacturing investment projects announced in the first year of implementation of the US Chips and Science Act and the Inflation Reduction Act were postponed or suspended.

Despite being accused of protectionism, the United States still pushed for the above two bills to take effect in 2022, trying to encourage industries to return to the United States through large subsidies. In the past two years, what difficulties have the flagship industrial policies of the US government, which it is proud of, encountered? Why are these so-called industrial policies born out of political manipulation struggling? What negative effects have these controversial policy operations produced?

This is the U.S. Capitol Building photographed in Washington, the capital of the United States, on April 23. Photo by Xinhua News Agency reporter Liu Jie

What difficulties does the policy encounter?

In August 2022, the US Chips and Science Act and the Inflation Reduction Act were signed into law by President Biden. The former aims to promote the "repatriation" of chip manufacturing to the United States through huge industrial subsidies and overbearing clauses that curb competition; the latter, in the name of fighting inflation, plans to promote the production and application of electric vehicles and other green technologies in the United States with a large number of incentives including high subsidies.