By Patricia Zengerle

WASHINGTON (Reuters) - Republican and Democratic members of the U.S. House of Representatives introduced legislation on Wednesday that would authorize President Joe Biden's administration to negotiate a tax agreement with Taiwan, seeking to foster investment as Washington works to shore up the island against a rising China.

The lawmakers, including House Foreign Affairs Committee Chairman Michael McCaul and top Democrat Gregory Meeks, said the agreement, similar to a treaty, would facilitate investment, protect against tax evasion and allow businesses in both the United States and Taiwan to avoid double taxation.

"In addition to the advantages we will receive from more investment from Taiwan, this is another important step in safeguarding Taiwan and maintaining peace and stability in the Indo-Pacific," McCaul said in a statement.

The bill is a companion to a measure introduced in the Senate in May by lawmakers including the chairman and ranking member of the Senate Foreign Relations Committee.

Washington and Taipei do not have formal diplomatic relations, so the lack of a tax agreement means Taiwanese businesses and individuals are taxed on their income by both the U.S. and Taiwanese governments.

China views democratically governed Taiwan as its own territory and has increased military, political and economic pressure to assert those claims.

Taiwan is a major global supplier of the semiconductor chips essential to a wide range of consumer goods and military equipment.