Biden orders review into US supply chain to counter China

PRESIDENT Joe Biden yesterday ordered a review of US supply chains, including for personal protective equipment and electric-vehicle batteries, as he moved to put an end to America’s reliance on China.

Mr Biden signed an executive order for a 100-day review into possible weaknesses in American manufacturing, after the Covid-19 pandemic put into stark focus how reliant the US is on foreign-made goods to fill the gap left by its own beleaguered industry.

“We shouldn’t have to rely on a foreign country to provide and protect our people during a national emergency,” Mr Biden told reporters at the White House. The US needed “to stop playing catch-up” and prevent a crisis from hitting in the first place, he added, warning of the danger of the supply chain being used as leverage.

A lack of PPE and other medical equipment left hospital workers resorting to reusing masks and gloves to try to stay safe from coronavirus. Car-makers 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.

Yesterday, in a sign of the urgency of the matter, Mr Biden met a bipartisan group of legislators 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 America’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.”

Mr Biden has said China is aggressively outpacing the US on infrastructure. “If we don’t get moving, they’re going to eat our lunch,” he warned. The order fulfils an election pledge to build a more resilient domestic supply chain.