Congress Must Prevent China From Succeeding in the Global Innovation Competition

Congress Must Prevent China From Succeeding in the Global Innovation Competition

Clearing the Path for American Innovations

There are currently over 440 new chemical innovations stuck in the Environmental Protection Agency’s (EPA) review process, and more than 90% of them have already missed their deadlines. Shockingly, over 300 of these innovations have been waiting for a decision for over a year.

Each day these innovations remain in limbo is another day America loses its competitive edge against China in the global innovation race. This should raise serious concerns for anyone who cares about the nation’s economic future.

The next wave of American manufacturing isn’t going to come from catchy slogans; it’s going to rely on advancements in chemistry. Everything, from the chips in our phones to the batteries in our trucks and the materials that keep AI data centers from overheating, hinges on American companies’ ability to innovate and introduce new chemistries domestically. When Washington mismanages chemical policy, it doesn’t just delay approvals; it inadvertently grants China more ground to cover.

This brings us to a little-known deadline approaching on Capitol Hill, one that could have more implications than most might think.

Recently, President Trump signed legislation to keep the government funded until December 11. This funding package also included a temporary extension of the TSCA fees program, which is crucial for funding the EPA’s review of chemicals. In simpler terms, Congress has given itself a few more weeks to act, and it shouldn’t squander this time.

A decade ago, Congress significantly revised America’s primary chemical management law, the Toxic Substances Control Act (TSCA), receiving strong bipartisan support. The House had an overwhelming vote of 403 to 12, and the Senate passed it through a voice vote.

However, according to the Government Accountability Office (GAO), the EPA has met its TSCA deadlines less than 10% of the time over the last five years.

Imagine you’re running a plant in Ohio or Texas. Your team has invested years and millions into developing a cutting-edge product. You file the necessary paperwork in January, expecting feedback by spring. Yet, summer drags on, Christmas comes, and the next year starts with no update and no timeline in sight. Worse yet, your plant might even contemplate moving overseas due to the unpredictability of the U.S. regulatory environment.

This isn’t just a hypothetical scenario. When innovation is forced overseas, the jobs and investments related to that innovation tend to follow.

For instance, consider a new cooling fluid designed for high-density data centers. It nearly eliminates water usage and can reduce cooling energy consumption by up to 90%. Unfortunately, regulatory concerns are pushing its deployment overseas.

Let’s take a moment to reflect on what’s really at stake here. The chemistry industry contributes about $673 billion annually and supports nearly four million American jobs. Meanwhile, China has emerged as the leading producer of chemicals and plastics, accounting for roughly half of all chemistry patents globally. Their dominance in chemistry is essentially subsidizing their entire manufacturing sector, and they certainly aren’t waiting for Washington to catch up.

President Trump seems to grasp the urgency of the situation. His America First agenda has already unlocked trillions in new manufacturing investments. The EPA, under the leadership of Administrator Lee Zeldin and Assistant Administrator Doug Troutman, is taking steps to address the backlog of new chemical reviews, and it’s essential that these advancements are sustained. Only Congress can solidify these improvements for the long term.

The good news? Congress doesn’t need to start from scratch. Three proposals are currently up for consideration—one in the House and two in the Senate. All of these aim to expedite new chemical reviews, ensuring they’re based on sound science rather than speculative scenarios. The House proposal also seeks to prioritize chemistries that enhance critical supply chains and accelerate reviews of chemicals already approved by trusted allies. That’s how America can outpace China: by innovating at home and doing it quickly.

And this sentiment isn’t exclusive to the chemical industry. Over 100 organizations representing a broad spectrum of American innovators and producers are unified in their demand for Congress to take action. This isn’t about compromising safety; it’s about making timely safety decisions based on credible science and tangible evidence. Delays don’t enhance safety—they merely push innovation and production beyond our borders.

Some voices in Washington might advise a temporary fix, extending the current provisions further into the future. But it’s this very attitude of temporary fixes that has led to the current backlog we face. A decade’s worth of stopgap measures has brought us to this point, and another extension will likely result in more of the same.

Congress must take decisive action before December 11. Committees have already drafted legislation; the administration is moving in a positive direction; and there is a coalition in place. Lawmakers from both parties recognize the reality of the backlog, but what’s crucial now is actually voting on a solution.

Mr. President, you’ve urged American manufacturers to build right here at home, but the current environment makes that quite difficult in the global innovation arena. Congress has the power to level the playing field. By December 11, lawmakers should not only fund TSCA but also reform it for the better.

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