Shenango Valley News

On January 15, the U.S. House of Representatives approved the United States-Taiwan Expedited Double-Tax Relief Act with a vote of 423-1. The legislation aims to enhance investment in American manufacturing jobs, especially in semiconductor and chip production, while strengthening U.S. supply chains to improve national security and counter China's influence.

Taiwan is currently the largest trading partner of the United States without a tax treaty. "America should not have to rely on foreign adversaries like China for our supply chains when we can partner with better allies like Taiwan," said Representative Kelly. "As conflicts continue to rise across the globe, we must build our relationships with strong democracies, like Taiwan."

The act is expected to benefit American workers and businesses by deepening economic ties with Taiwan. In 2019, U.S. exports to Taiwan supported approximately 188,000 American jobs. Additionally, Taiwanese investments directly support nearly 21,000 jobs in the United States and contribute $1.5 billion in U.S. exports.

Establishing a tax treaty with Taiwan would encourage U.S.-based semiconductor and chip manufacturers to expand their operations domestically, thereby securing strategic supply chains. The Chinese Communist Party's control over American supply lines has been a concern; hence this move emphasizes reliance on more reliable partners for economic growth.