WASHINGTON, D.C. – American workers and manufacturers will receive fairer tax treatment and the nation’s competitive edge against China will be strengthened under legislation approved by a bipartisan majority in the U.S. House of Representatives. The United States-Taiwan Expedited Double-Tax Relief Act (H.R. 33) will spur greater investment in manufacturing jobs in America – particularly when it comes to semiconductor and chip production – strengthen U.S. supply chains to reinforce the nation’s security, and combat China’s harmful influence. It follows action taken last Congress to authorize and establish the first steps in a free trade agreement between the U.S. and Taiwan.

In his opening statement during debate on the floor of the U.S. House of Representatives, Ways and Means Committee Chairman Jason Smith (MO-08) highlighted how the legislation will support American jobs and economic growth while securing critical supply chains:

“Enacting this legislation will help create jobs here at home. U.S. exports to Taiwan support 188,000 American jobs and Taiwanese investment in the United States supports another 21,000. Reducing burdens to Taiwanese investment in America will help aid in building new cutting-edge manufacturing plants staffed by American workers. It will help support our domestic semiconductor and chip manufacturing capabilities, securing strategic supply chains and helping us further move away from China.

“Enhancing our relationship with Taiwan will strengthen the U.S. economy and our national security. Instead of leaving critical supply chains in the hands of the Chinese Communist Party, we need to be making more goods in America – or in partnership with allies like Taiwan that share our interests – to reduce our dependence on China.”

Speaker Mike Johnson (LA-04) issued the following statement upon passage of the legislation:

“House Republicans understand the significance of America’s economic relationship with Taiwan. By passing legislation to streamline the tax process for cross-border investments, we are strengthening our economic ties, boosting our competitiveness, and creating jobs. This bill empowers the President to negotiate a tax agreement with Taiwan and ensure our partners in Taiwan do not face double taxation here in the U.S. We want Taiwanese companies to build factories right here within our borders and make the U.S. a more competitive place for semiconductor companies to do business.”

Key Points:

• American workers and businesses will benefit from deepening the U.S. economic relationship with Taiwan.
  • In 2019, U.S. exports to Taiwan supported an estimated 188,000 American jobs. 
  • Taiwanese investment directly supports nearly 21,000 jobs in the United States and $1.5 billion in U.S. exports. 
• Establishing a tax treaty with Taiwain encourages U.S. based semiconductor and chip manufacturers to grow and invest here in the U.S., further securing strategic supply chains.
• The U.S. is Taiwan’s largest trading partner without a tax treaty.
• The Chinese Communist Party should not control American supply lines – the U.S. should instead rely on better partners to grow our economy.