Sec. 145. Strategy for promoting supply chain diversification
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The Secretary of State, in consultation with the heads of other relevant Federal agencies, as determined by the Secretary, shall develop, implement, and submit to the appropriate committees of Congress a strategy to increase supply chain resiliency and security by promoting and strengthening efforts to incentivize the relocation of supply chains from the PRC. The strategy required under subsection
(a)shall— be informed by consultations with the governments of allies and partners of the United States; provide a description of how supply chain diversification can be pursued in a complementary fashion to strengthen the national interests of the United States; include an assessment of— the status and effectiveness of current efforts by governments, multilateral development banks, and the private sector to attract investment by private entities who are seeking to diversify from reliance on the PRC; major challenges hindering those efforts; and how the United States can strengthen the effectiveness of those efforts; identify United States allies and partners with comparative advantages for sourcing and manufacturing critical goods and countries with the greatest opportunities and alignment with United States values; identify how activities by the United States Agency for International Development, the United States Trade and Development Administration, and the United States International Development Finance Corporation can effectively be leveraged to strengthen and promote supply chain diversification, including nearshoring to Latin America and the Caribbean as appropriate; advance diplomatic initiatives to secure specific national commitments by governments in Latin America and the Caribbean to undertake efforts to create favorable conditions for nearshoring in the region, including commitments— to develop formalized national strategies to attract United States investment; to address corruption and rule of law concerns; to modernize digital and physical infrastructure; to lower trade barriers; to improve ease of doing business; and to finance and incentivize nearshoring initiatives; advance diplomatic initiatives towards mutual recognition of standards and regulations, expedite customs operations, and facilitate economic integration and the World Trade Organization Trade Facilitation Agreement; and develop and implement programs to finance, incentivize, or otherwise promote supply chain diversification in accordance with the assessments and identifications made pursuant to paragraphs (3), (4), and (5), including, at minimum, programs— to develop physical and digital infrastructure; to promote transparency in procurement processes; to provide technical assistance in implementing national nearshoring strategies; to mobilize private investment; and to secure commitments by private sector entities to relocate supply chains from the PRC. In implementing the strategy required under subsection (a), the Secretary of State and the heads of other relevant Federal agencies, as determined by the Secretary, should, as appropriate, coordinate with the United States Executive Director to the World Bank Group and the United States executive directors to regional development banks.