"We don’t need to be China to beat China," Haley announced in a statement to Fox News Digital.
The bill, directed at boosting the U.S. semiconductor industry to give the U.S. the competitive edge over China, cleared a procedural vote in the Senate this week with 16 Republican votes.
The bill contains $52 billion in funding for the semiconductor industry, yet has increased to contain provisions that include research, intellectual property and different competition-related provisions -- meaning the price tag could pass $200 billion.
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While those in backing of the legislation have touted the value of national security in being able to compete with China -- especially in the area of computer chips, where the globe has suffered significant supply chain matters -- it has raised concerns regarding inflation and corporate welfare.
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Haley, a prominent China hawk, was not persuaded that the hefty legislation was the way to compete with Beijing.
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"The way to encourage innovation and strengthen our national security isn't through corporate handouts," the former South Carolina governor announced. "As Americans suffer from the worst inflation in 40 years, this legislation doesn't ensure that our best asset—our innovation—won't be funneled back to help Communist China. That's a bad deal for the American people."
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Haley’s concerns regarding inflation, corporate welfare and a potential benefit to China, have been shared by some Republicans in the Senate. Sen. Rick Scott, R-Fla., stated on Fox Business on Wednesday that it would give corporations like Intel tax breaks, tax credits and cash to build a plant.
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"And guess what? They can keep doing business in China," he announced. "If China invades Taiwan they can keep doing business just as they are right now in China. Sounds like a pro-China bill, not an anti-China bill to me."
The Biden administration, meanwhile, has pushed hard for the passage of the bill. Commerce Secretary Gina Raimondo stated recently that the matter was a "grave national security threat."
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"If you don't get this done by August 4 there is irreparable harm to the United States economy and the United States military operations. So you have to at least get this done now," she explained to Reuters.
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The timetable for the bill passing the Senate remains unclear, although it's possible the bill will pass this week or next week. A Senate GOP aide explained to Fox News that it's not totally clear exactly what provisions will be in the final version of the bill.
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