The passage of the U.S. Innovation and Competition Act (USICA) March 28 signals an aggressive stance to make the United States more competitive with China and bolster U.S.-Taiwan relations.
“The Senate took another step forward today in delivering on the president’s vision to strengthen our supply chains, make more in America, and outcompete China and the rest of the world for decades to come,” White House Press Secretary Jen Psaki said in a statement from the White House.
The bill focuses on China, and if reconciled, would boost domestic production of semiconductors, increase the frequency of foreign disclosures of U.S. land ownership, and screen overseas investment in China, according to the text of the bill.
This tougher stance on China came ahead of U.S. Trade Representative Katherine Tai’s testimony before the House Ways and Means Committee March 30. During her testimony, she said that the PRC's failings in agreements made it "clear that the PRC would only comply with those trade obligations that fit its own interests."
The bill strengthens the United States’ relationship with Taiwan, including allowing Taiwanese personnel to wear the Taiwan flag in the United States, according to Taiwan News. It also makes provisions to continue arms sales.
