Biden push to reduce US dependence on foreign suppliers in key sectors ‘faces many hurdles’

US President Joe Biden has ordered a review of American supply chains for critical products including semiconductors, with China clearly a target

Observers say relocating production will be difficult, and warn the move could have an impact on Chinese high-end electronics in the near term

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President Joe Biden signed an executive order for a broad review of US supply chains with the aim of reducing reliance on foreign products. Photo: Xinhua

Published: 9:48pm, 25 Feb 2021Updated: 9:35am, 26 Feb 2021

Despite US President Joe Biden’s push to put the power of the federal government behind an effort to reduce the nation’s dependence on foreign suppliers in key sectors, doing so will be very difficult, very expensive and take a long time, observers said.

Biden signed an executive order on Wednesday directing a broad review of American supply chains for critical products aiming to reduce reliance on foreign suppliers.

The order requires federal agencies to begin a 100-day review process to find ways to increase domestic production in four areas: semiconductors, pharmaceuticals, automobile batteries and rare earth minerals that are crucial for hi-tech and defence applications.

Biden’s order did not name China, but his remarks announcing the initiative made clear it was a target.

We shouldn’t have to rely on a foreign country, especially one that doesn’t share our interests, our values, in order to protect and provide [for] our people during a national emergency

Joe Biden

“We shouldn’t have to rely on a foreign country, especially one that doesn’t share our interests, our values, in order to protect and provide [for] our people during a national emergency,” Biden said at the signing.