Commentary / Coronavirus

Lawmaker to Introduce Bill to Help US Manufacturers Move Out of China

chinaRep. Mark Green (R-Tenn.) is set to introduce a bill to help companies move their manufacturing from China to the United States as momentum builds for the country to “decouple” from the Chinese regime as a result of the pandemic.

Green told The Epoch Times that his forthcoming bill would allow firms to deduct the entire cost of capital spending associated with relocating from China—known as “immediate expensing”—to lure companies to move to the United States. The bill would pay for this with money collected from U.S. tariffs on Chinese imports, he proposed.

The idea of covering 100 percent of moving costs was also recently endorsed by White House economic adviser Larry Kudlow, who said it would be “a very good thing for American companies.”

The move comes as the Trump administration pushes to cut its supply chain dependence on China. The pandemic’s disruption of global supply chains along with the Chinese regime’s mishandling of the outbreak has propelled the United States and other countries to find alternative manufacturing bases.

“Any efforts to decouple is … wise for us, both from an economic standpoint and from a national security standpoint,” Green said.

He said the bill was slated to be introduced by the end of the week.

Supporting American

Green recently introduced another bill aimed to stop China from acquiring U.S. companies vital to national security, as asset prices fall due to the pandemic.

“Right now, they are on a buying spree across the globe for companies with a significant national security implication,” he said.

The congressman cited as an example United Airlines’ recent sale and lease back of 22 planes to Bank of China Aviation, the Hong Kong-listed unit of Chinese state-owned Bank of China.

“Now China has 22 large aircrafts that they could take off the market if they wanted to hurt the United States,” Green said.

The head of the North Atlantic Treaty Organization (NATO) also warned of such developments.

“Some may seek to use the economic downturn as an opening to invest in our critical industries and infrastructure,” NATO General Secretary Jens Stoltenberg said on April 15.

Green’s SOS ACT (Secure Our Systems Against China’s Tactics) would incentivize Americans to invest in companies critical to national security by having the Treasury back 50 percent of the investment. In this way, if the investments fail, investors can recover half of their initial costs back, Green said. To pay for this initiative, the bill would set aside $10 billion from the CARES Act, the virus-related relief package.

Making Beijing Pay

The congressman criticized efforts to blame President Donald Trump for his handling of the pandemic when the attention should be focused on the Chinese regime’s coverup, which caused the global spread of the disease.

“I think this is a strategic effort of the media to frame Trump for something that’s not his fault,” Green said. “China clearly could have stopped this.”

He said the regime’s failure to disclose what it knew about the virus in the early stages, including its contagiousness and severity, meant that the United States was making decisions based on incomplete information.

Green applauded Trump’s decision early on to ban travelers from China, a move that was criticized by Beijing and the World Health Organization at the time.

The Trump administration is reportedly considering a range of measures against the regime for causing the pandemic, including sanctions, trade restrictions, and removing the legal protection of sovereign immunity, which would allow Americans to sue Beijing in U.S. courts.

Green supports canceling U.S. debt obligations to the regime as a way to recoup the costs of the pandemic’s damage to the United States. Trump recently rejected the idea, calling it a “rough game,” while suggesting that sanctions could involve tariffs on China instead.

“The United States has basically had to crush its economy. Therefore we expect them to cover that loss,” Green said.

Reprinted with Permission from - Epoch Times by - Cathy He

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PaulE
3 months ago

The bill needs to be tightened up to achieve the general goals it outlines. As it stands now, there are too many ways to side-step the intended goals. Here is how you make the bill more viable: 1) The company has to complete the move from China back to the U.S. within 2 years in order for expenses to be fully tax deductible. If they miss the 2 year deadline or only move less than 75 percent of their business in China back to the U.S., only 50 percent of such expenses would deductible and any goods they still produce… Read more »

E. Fletcher
3 months ago

I’m completely for ALL of our manufacturing to get out of China and come back home. However, why must we pay for their expenses? Did we pay for them to move to China? I worked in medical. I’ve seen what several of their contaminated medications have done to people. Not to mention what their contaminated products have done to our pets. Can’t those people get their heads screwed on straight? Are they stupid or evil? We are in one miserable mess and some of the blame is with our avaricious business executives who want cheap labor. Well, they got cheap… Read more »

Bob L.
3 months ago

Those companies that moved their operations to Red China at the cost of American jobs should have been slapped with higher tariffs than usual on anything they “imported” back to the U..S. In many cases, those companies were required to disclose confidential business and industry product information to the Chicoms making patent protections worthless. The slave labor produced goods from Red China further damaged our manufacturing industries which could not compete fairly against the imports produced and even shipped thousands of miles at below (U.S.) costs of production. Many of the imports don’t match U.S. quality or safety standards, making… Read more »

Mary
3 months ago

Let’s end business with ALL communist countries, not just China. The smaller ones are funded/guided by China to some extent.

JonsOn
3 months ago

Moving American manufacturing back to the USA makes a lot of sense. Keeping them in China doesn’t. I wasn’t aware that many of our pharmaceuticals were either made in China or sourced from China. I didn’t think anyone was dumb enough to manufacture something as critical like drug in a country that very well could be an enemy some day. If China were to want a war with the US all they have to do is taint the drugs we get from them and they win. Some people in high places lack common sense. We need this bill.

steve
3 months ago

How about a law demanding that these US job killers move out of China by the end of this year ?
Don’t play nice with these traitors. And while we’re at it, lets set a ceiling on what they will be paid
for their pills.

Rob M
3 months ago

Why would we pay those greedy, selfish, companies to do the patriotic and right thing? Did we pay them to take these jobs to China and other foreign countries in the first place? I don’t think so! What we should be doing is telling them that if they want to sell their products in the U.S., they will relocate the jobs to the U.S. If they don’t want to do it this way, ban them from selling their products in the U.S., or slap such high tariffs on their products that they won’t be able to sell them in the… Read more »

Kyle
3 months ago

If you want to hurt China,get rid of wal-mart.

Frank Gesuele
3 months ago

This must be the 1st of many steps to make Chicoms pay.

So Sueme
3 months ago

We don’t need special, targeted legislation to return manufacturing to America. We need taxes slashed, regulations demolished, a Federal Government that obeys the rules and FREEDOM!

Margaret Doane
3 months ago

First “our” representatives actually paid companies to move to China, also guaranteed that if they lost their business or any money due to Chinese problems, the US taxpayer would cover their losses. No more corporate welfare !!!

ELIZABETH GODDARD
3 months ago

They got tax breaks to have their facility in another country we should pay them to come back permanently

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