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US-China relations
ChinaDiplomacy

Joe Biden orders review of US supply chains’ reliance on overseas producers

  • Federal agencies must increase domestic production in four areas: semiconductors, pharmaceuticals, rare-earth elements, automobile batteries, Biden says
  • Biden vows to work closely with ‘trusted friends and partners – nations that share our values – so that our supply chains can’t be used against us as leverage’

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US President Joe Biden (right) and Vice-President Kamala Harris meet with lawmakers on Wednesday to discuss supply chain disruptions. Photo: AFP
Jodi Xu Kleinin United States
US President Joe Biden signed an executive order on Wednesday directing a broad review of American supply chains for critical products including semiconductors, aiming to reduce reliance on countries such as China.

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 elements that are crucial to tech and defence.

“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, though he did not mention China by name.

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“Building resilience will mean increasing our production of certain types of elements here at home. It means working more closely with our trusted friends and partners – nations that share our values – so that our supply chains can’t be used against us as leverage.”

01:27

China calls for dialogue with the US to restore ‘deteriorating relations’

China calls for dialogue with the US to restore ‘deteriorating relations’

Shortages of personal protective equipment such as surgical masks and gloves devastated front-line health care workers as the Covid-19 pandemic surged a year ago. More recently, a chip shortage has forced automakers to reduce factory shifts and cut production.

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