HR8238-118

1. Consideration of Taiwan for enhanced defense industrial base cooperation Consistent with the Taiwan Relations Act (22 U.S.C. 3301 et seq.), the Secretary of Defense, in coordination with the Secretary of State and the head of any other relevant Federal department or agency, shall take measures to ensure that Taiwan is appropriately considered for enhanced defense industrial base cooperation activities aligned with the United States National Defense Industrial Strategy to expand global defense production, increase supply chain security and resilience, and meet the defense needs of Taiwan. Consideration for enhanced defense industrial base cooperation activities under paragraph (1) shall include the consideration of Taiwan for the following: Eligibility for funding to initiate or facilitate cooperative research, development, testing, or evaluation projects with the Department of Defense. Eligibility to enter into a memorandum of understanding or other formal agreement with the Department of Defense for the purpose of conducting cooperative research and development projects on defense equipment and munitions, with a focus on enhancing the defense industry and supply chain resilience of Taiwan. The Secretary of Defense, in coordination with the Secretary of State, the Government of Taiwan, and representatives of the United States defense industry, shall conduct a study on the feasibility and advisability of entering into one or more defense industrial agreements with Taiwan. The study required by paragraph (1) shall— evaluate the strategic benefits and implications of entering into a defense industrial agreement with Taiwan, including with respect to— long-term supply chain security and resilience; mutual supply of defense goods and services; supply of regional maintenance, repair, and overhaul capabilities and any other support capability the Secretary considers appropriate; and the promotion of interoperability; account for the legal, economic, and defense policy aspects of a closer defense procurement partnership between the United States and Taiwan; and include a list of not fewer than 5 defense capabilities— developed by, and produced in, Taiwan; and that require expedited licenses for components produced in the United States; or developed by the United States but for which the United States defense industry cannot meet the demand of Taiwan on a timely basis so as to necessitate production in Taiwan. Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the results of the study conducted under paragraph (1).