What Happened: The U.S. House of Representatives is preparing to progress on the U.S. Innovation and Competition Act, which devotes major funding to industrial development, Bloomberg reported Jan. 13. On Jan. 12, China’s State Council released a plan to develop China’s digital economy by 2025.

Why It Matters: Both countries are planning to reinvigorate their industrial policies amid ongoing competition over strategic technology. The United States will continue to expand its bans on supplying and investing in certain Chinese technology companies, as it did recently with world-leading Chinese drone maker DJI. China will have a light touch on technology bans, as it needs U.S. tech to fuel its industries, but Beijing will also emphasize self-sufficiency in tech companies by encouraging local Chinese suppliers to replace foreign ones when possible. China will also continue to invest tens of billions of dollars in its "strategic emerging industries" like artificial intelligence, next-generation 6G cellular networks and new energy vehicles.

Background: The U.S. Innovation and Competition Act allocates $52 billion to bolster the U.S. chips industry. China plans to develop its digital economy by providing 60 million households with 1-gigabit internet speeds, connecting 45% of industrial enterprises to "industrial internet platforms," registering 800 million Chinese citizens for digital government services, and boosting supply chain security by producing more technology domestically.