Joe Biden orders review into supply chain to counter China

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Washington: Joe Biden, the US president, ordered a review of US supply chains, including for personal protective equipment and electric-vehicle batteries, with the aim of putting an end to America’s reliance on China.

Biden signed the executive order on Thursday (AEDT) for a 100-day review into possible weaknesses in American manufacturing after the COVID-19 pandemic put into stark focus how reliant the US was on foreign goods to fill the gap left by its own beleaguered industry.

President Joe Biden.

President Joe Biden.Credit:AP

“American households, workers, and companies have increasingly felt the strain of shortages of essential products - from medicine to food to computer chips,” the White House said.

A lack of PPE and other medical equipment left hospital workers resorting to reusing masks and gloves to try to stay safe from coronavirus. Carmakers were forced to shut down plants because of a shortage of computer chips, putting workers on furlough.

The initial review will look at four products: digital chips, large capacity batteries used in electric cars, pharmaceuticals and rare earth minerals.

The administration will then take a closer look at six sectors: defence, public health and biological preparedness, communications technology, transportation, energy, and food production.

In a sign of the urgency of the matter, Biden met on Wednesday at the White House with a bipartisan group of lawmakers to discuss the global computer chip shortage. He hopes to address the potential national security and economic risks of having to import sensitive goods from countries such as China.

While the executive order does not mention China by name, experts say the move is aimed at countering the US’s biggest economic rival, which produces most of the world’s supply of minerals used in phones, the defence sector and electric cars.

“While we cannot predict what crisis will hit us, we should have the capacity to respond quickly in the face of challenges,” the White House said.

“The United States must ensure that production shortages, trade disruptions, natural disasters and potential actions by foreign competitors and adversaries never leave the US vulnerable again.”

Biden has said China is the “most serious competitor” to the US and has warned senators that China is aggressively outpacing America on infrastructure.

“If we don’t get moving, they’re going to eat our lunch,” he said.

The order fulfils a pledge made by Biden in the run-up to the November election that the US needs a more resilient domestic supply chain.

Telegraph, London