On Friday, January 17th, Mark Green, the Chairman of the House Homeland Security Committee and a Republican lawmaker, reintroduced two bills to encourage companies to shift production capacity from China to the United States or Latin American countries, ensuring that supply chains are not compromised by the Chinese Communist regime.
The two bills are the Western Hemisphere Nearshoring Act and the Bring American Companies Home Act. The former aims to create a low-interest loan program using Chinese tariffs to incentivize businesses to relocate factories from China to Latin America. The latter utilizes tariff revenue from China to provide tax incentives for companies to offset the costs of relocating production capacity from China back to the United States.
Mark Green stated in a press release that the Western Hemisphere Nearshoring Act he proposed would usher in a new era of strengthened connections and economic growth throughout the Americas.
“By encouraging companies to move manufacturing from China to Latin America and the Caribbean, we can create a win-win situation,” he said. “This will promote economic growth in Latin America and the Caribbean, reduce illegal immigration into the United States, and provide Americans with affordable goods.”
He further stated, “My Bring American Companies Home Act will further protect our supply chains from the influence of the Chinese Communist Party.”
Green emphasized that the Chinese Communist Party suppresses its people and seeks to surpass the United States, undermining America’s global alliances, a fact that is no longer a secret.
Instead of supporting an authoritarian regime’s economy, Green added, “It’s better to repair and strengthen our own economy.” He highlighted China’s tightening control over businesses within its borders.
“It is time for American companies to realize that dependence on Chinese manufacturing threatens their supply chains and bottom lines, ultimately endangering our national security,” Green stated.
The Western Hemisphere Nearshoring Act, through low-interest loans from the U.S. International Development Finance Corporation (DFC), encourages companies to revitalize manufacturing in the Western Hemisphere. Borrowers can use the loans to cover costs associated with moving from China to Latin America, including training workers, establishing infrastructure like utilities, and more.
Furthermore, companies relocating manufacturing assets to the Latin American region can benefit from tax incentives, such as 15 years of duty-free trade with the United States, among other preferential treatments.
The Bring American Companies Home Act will establish a scheme where U.S. businesses relocating inventory, equipment, and supply chains from China to the United States can receive tax credits.
“The malicious influence of the Chinese Communist Party continues to spread throughout the Western Hemisphere. It is time for us to stand firm,” Green told Fox News. “By rebuilding infrastructure and manufacturing jobs in this region, we can resist China’s siren song.”
For a long time, the United States has made significant investments in Latin America and the Caribbean, yet China remains the largest trade partner for South America.
As part of the “Belt and Road” initiative, China is increasing its influence in South America through grants and loans. In response, U.S. lawmakers are beginning to propose shifting supply chains from China and hoping to establish trade partnerships throughout the Americas, reaffirming America’s position in the Western Hemisphere.
In recent weeks, Trump has consistently pointed out that China is controlling the Panama Canal and he will not allow the canal to fall into “the wrong hands.”
Trump emphasized the crucial importance of the Panama Canal to the United States and warned that if Panama does not alter its unfair tolls on the canal, he will demand the return of control over it.