Rep. Chip Roy On H.R. 6690, The BEAT CHINA Act
Rep. Chip Roy released the following statement Friday regarding his bill, H.R. 6690 -- The BEAT CHINA Act:
The United States of America is too reliant on China with regard to our medical supply chain.
China is the largest exporter of medical devices to the United States, and the second largest exporter of drugs and biologics. Chinese pharmaceutical companies produce more than 90 percent of our supply of antibiotics, vitamin C, ibuprofen, and hydrocortisone. Though the United States also imports drugs from other countries, China is the world’s largest producer of active pharmaceutical ingredients (APIs). Nearly three-quarters of the API manufacturing facilities for medicines sold in the U.S. are located in other countries.
It must end. It is in our national security interest to ensure that we are not heavily reliant upon any one nation, particularly one that is so hostile to our interests (generally).
Americans have seen in real time the extent to which we are dependent on China for drugs, medical supplies, and equipment. If the Chinese wanted to put us in a serious bind, they could withhold these lifesaving drugs from the United States.
Indeed, during the coronavirus pandemic, the China state-controlled news agency stated, “If China retaliates against the United States at this time. . . it will also announce strategic control over medical products and ban exports to the United States. Then the United States will be caught in the ocean of the new coronaviruses.”
We need to be looking for options today to alleviate our dependence on China for pharmaceuticals. Therefore, I have am introducing H.R. 6690 to incentivize these critical drug and medical supply manufacturing companies to move and produce in the United States and/or its territories. The tax code can and should be modified to increase production at home as opposed to under the thumb of our adversaries. Under this legislation:
My bill incentivizes companies to move to the U.S. through tax advantages. Under this legislation:
· Medical supply and pharmaceutical companies moving from a foreign country to the United States can have non-residential real property purchases considered to be 20-year property instead of 39 years, a change which will allow companies to be eligible for “bonus depreciation” and the purchase of the property to be fully deducted in the first year.
· Qualifying companies will also be able to exclude from gross income any gain earned on the disposition of assets in the country the company is moving from. This will prevent companies from taking unnecessary hits from taxes if they choose to move to the U.S.
· In order for companies to qualify for these tax incentives, and to ensure domestic production of materials is ramped up, companies must adhere to at least same production levels in the U.S. as levels of the country they move from.
- Association of Mature American Citizens
- Conservatives for Property Rights