President Barack Obama says U.S. companies should be rewarded for keeping jobs at home, rather than getting tax breaks for moving them overseas.

The president said in his State of the Union address to Congress Tuesday that the U.S. tax code must be changed so companies no longer get a deduction for outsourcing jobs. He said manufacturers who keep factories and jobs at home should get a bigger tax cut.

Mr. Obama also announced the creation of what he calls a Trade Enforcement Unit, that he says will investigate unfair trade practices from nations such as China. The unit will also investigate cases of pirated American movies, music, and software and increase inspections to stop fake and unsafe products from entering the country.

He also urged Congress to ensure that no foreign company has an advantage over American manufacturing when it comes to accessing finance or new markets, such as Russia. If the playing field is level, President Obama says, “America will always win.”