H.R. 3563: Taiwan PLUS Act

This bill, known as the Taiwan PLUS Act, aims to strengthen defense cooperation between the United States and Taiwan. Here is a summary of its key components:

Short Title

The Act may be officially referred to as the Taiwan PLUS Act.

Findings

Congress establishes several findings regarding Taiwan's relationship with the United States, including:

• Taiwan is the 7th largest trading partner of the United States.
• Recognized by 12 countries as an independent state, Taiwan is treated as a major non-NATO ally by the U.S. for defense purposes.
• The 2018 National Defense Strategy prioritizes protecting U.S. allies and partners, which includes supporting Taiwan against military aggression.
• The Taiwan Relations Act states that the U.S. will provide defense articles and services sufficient for Taiwan’s self-defense capability.
• Taiwan has consistently been a major customer for U.S. Foreign Military Sales (FMS), receiving substantial arms and services over the years.

Sense of Congress

The bill expresses the Congress's view that:

• Enhanced defense cooperation with Taiwan is vital for U.S. national security.
• Congress should consider designating Taiwan as a member of the NATO Plus community to strengthen its rights and privileges related to military sales.

Enhanced Defense Cooperation

The bill proposes significant changes to how the U.S. interacts with Taiwan regarding defense:

• Over the next five years, Taiwan would be treated similarly to NATO allies under specified provisions of law concerning arms exports and military cooperation.
• This includes various subsections of the Arms Export Control Act, which govern the sale of defense articles and services.
• The Secretary of State can extend this treatment for additional five-year periods as long as it aligns with U.S. national security interests.

Overall Goal

The overall goal of the bill is to enhance Taiwan's military capabilities and ensure its self-defense, while reinforcing U.S. commitments to its allies in the region amidst rising regional tensions.

Relevant Companies

• RTX Corporation (RTX) - As a major defense contractor, RT's business could be impacted due to increased arms sales and military agreements with Taiwan.
• Lockheed Martin Corporation (LMT) - This company could see significant impacts given its role in supplying military technology and equipment to Taiwan.
• Northrop Grumman Corporation (NOC) - Similar to RTX and Lockheed Martin, Northrop Grumman is a defense contractor that may benefit from increased military collaborations.