Biden wants to bring chipmakers to US, but Taiwan demands better tax deal

President Joe Biden wants to bring the world's most sophisticated chipmakers to the U.S., while Taiwan says he should offer them a better tax deal - one that could infuriate China.

Taiwanese officials are pushing for an agreement to eliminate double taxation, like the U.S. has with dozens of countries. The absence of such arrangements is a major problem and the Treasury and State Department will find a way to address it, according to a statement by the Treasury and State Department on Wednesday.

Without a deal, Taiwan argues that would-be investors would be put off by the prospect of whopping tax bills and the administration's flagship industrial policy falling short of its potential. Taiwanese President Tsai Ing-wen, who will be in the US during the coming week, will likely push the case further. Her visit is already raising tensions: China warned on Wednesday that a mooted meeting with House Speaker Kevin McCarthy would be seen as a provocation. This could be due to a conflict with your ad blocking or security software. You have a list of allowed sites that include jp and piano.io. If this does not resolve the issue or you are unable to add the domains to your allowlist, please see this FAQ. We humbly apologize for the inconvenience.