Jul 16 2020

Graham: We Must No Longer Be Reliant on China for PPE

WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) has sent a letter to White House Chief of Staff Mark Meadows urging the Trump administration to include provisions of Graham’s legislation, the U.S. MADE Act, into any Phase IV relief package that may come before Congress.

Graham visited manufacturing facilities making Personal Protective Equipment (PPE) for front-line medical personnel in May. He noted South Carolina, with its long tradition in textiles and advanced manufacturing, could play a leading role in helping the United States become less dependent on China for critical medical equipment. Next week, Graham will formally introduce the U.S. MADE Act in the Senate. President Trump will have the authority to implement the ‘Buy America’ provisions of the bill immediately.

“China has laid the groundwork required to dominate the PPE market as part of their effort to maintain a grip on the global public health industrial supply chains,” wrote Senator Graham. “Unfortunately, we have seen in stark clarity the problems this placed on our ability to manufacture a robust and reliable supply of PPE. I urge you to support efforts in the upcoming COVID relief package to ensure the federal government is no longer reliant on China for the procurement of PPE.”

“American companies are reluctant to make long term investments in domestic PPE production because of the uncertainty in future market conditions,” continues Graham. “However, the ability to supply our own PPE is an issue of national security. Just as we don’t rely on China to supply military uniforms we must not rely on them to supply our PPE.”

“COVID-19 has brought unprecedented challenges to the United States. We can seize this moment by finally achieving PPE manufacturing independence and ensuring the United States is prepared to win the war against COVID-19. I encourage you to incorporate provisions of the U.S. MADE Act in President Trump’s COVID relief proposal,” concluded Graham.

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A COPY OF THE LETTER IS BELOW:

Dear Mr. Meadows:

China maintains a dangerous stranglehold over supplies of masks, gowns, and other Personal Protective Equipment (PPE) essential to our front line workers. China has laid the groundwork required to dominate the PPE market as part of their effort to maintain a grip on the global public health industrial supply chains. Unfortunately, we have seen in stark clarity the problems this placed on our ability to manufacture a robust and reliable supply of PPE. I urge you to support efforts in the upcoming COVID relief package to ensure the federal government is no longer reliant on China for the procurement of PPE. 

American companies are reluctant to make long term investments in domestic PPE production because of the uncertainty in future market conditions. However, the ability to supply our own PPE is an issue of national security. Just as we don’t rely on China to supply military uniforms we must not rely on them to supply our PPE.

The Berry Amendment was enacted in 1941 to require certain items purchased by the Defense Department be 100% domestic in origin. As a result, a domestic industrial base emerged. We need the same industrial base for PPE production. My legislation, the U.S. MADE Act will ensure that the strategic national stockpile is well supplied from American manufactures by utilizing a Berry Amendment procurement model and providing a tax incentive to spur investments.

Additionally, the U.S. MADE Act, establishes a medical production tax credit to help American manufacturers build out and retrofit factories to meet increased PPE demand. Modeled after the 48C Advanced Manufacturing Tax Credit, eligible U.S. manufacturers will receive a 30% credit against equipment costs associated with PPE manufacturing. 

COVID-19 has brought unprecedented challenges to the United States. We can seize this moment by finally achieving PPE manufacturing independence and ensuring the United States is prepared to win the war against COVID-19. I encourage you to incorporate provisions of the U.S. MADE Act in President Trump’s COVID relief proposal. 

Thank you for your consideration. I remain available to speak with you further at your convenience. 

Sincerely,

Lindsey O. Graham

United States Senator