House passes the COMPETES Act to strengthen U.S. competitiveness

The U.S. House of Representatives passed the Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (COMPETES) Act of 2022, which includes several bills designed to strengthen the competitiveness of U.S. businesses and improve the economy.

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The legislation was approved by the vote of 222-210. Several of the provisions in this package came out of the House Financial Services Committee, chaired by U.S. Rep. Maxine Waters (D-CA).

“The America COMPETES Act is a transformational piece of legislation that will empower American workers and businesses. It will also strengthen our nation’s financial system and allow us to better compete with the rest of the world, especially with the People’s Republic of China,” Waters said. “Under my leadership as Chairwoman of the Financial Services Committee, our members secured provisions that protect our national security and global financial stability. I look forward to engaging with my colleagues in the Senate to quickly finish the upcoming conference so we can send this bill to President Biden for his signature.”

Among the provisions that are part of this package is the U.S. Policy on World Bank Group and Asian Development Bank Loans to China. This provision directs the Treasury to vote against any loans to China from the World Bank or Asian Development Bank unless the Secretary of Treasury has certified to Congress that China meets certain conditions.

Another provision is the U.S. Stock Exchange Trading Prohibition for Two Consecutive Auditor Non-Inspection Years, which shortens the grace period that U.S. stock exchange listed companies currently have to comply with the Public Company Accounting Oversight Board (PCAOB) inspection requirements.

It also includes the Combating Wildlife Trafficking Financing and Proceeds Study Act, which requires the Treasury to study wildlife trafficking and its proceeds.

In addition, it encompasses the China Financial Threat Mitigation provision, which requires the Treasury Department to analyze risks to U.S. financial stability and the global economy emanating from the People’s Republic of China.

Further, the COVID-19 Emergency Medical Supplies Enhancement provision seeks to build on the Defense Production Act’s (DPA) purpose to ensure the United States has the materials necessary to respond to COVID-19.

Finally, the Securing America’s Vaccines for Emergencies provision clarifies that the President should use his authority under the DPA to ensure the availability of medical materials essential to national defense.