Biden Follows Trump’s Playbook On ‘Atmanirbhar America’, Signs Order To Review Supply Chain Of Critical Good, Products And Services To Reduce Dependence On China

President Joe Biden signed an executive order on Wednesday (Feb 24) mandating a review of supply chains of critical goods, products and services to reduce dependence on China and other rivals.

Biden’s order will initiate a 100-day review by federal agencies of supply chains of key pharmaceutical ingredients, semiconductor chips, minerals and rare earths, and high-capacity batteries.

“Resilient American supply chains will revitalize and rebuild domestic manufacturing capacity, maintain America’s competitive edge in research and development, and create well-paying jobs. They will also support small businesses, promote prosperity, advance the fight against climate change, and encourage economic growth in communities of color and economically distressed areas.” the executive order signed by the president read.

U.S Secretary of Commerce, in consultation with the heads of appropriate agencies, has been ordered to submit a report identifying risks in the semiconductor manufacturing and advanced packaging supply chains and policy recommendations to address these risks

President Biden ordered the U.S Secretary of Energy to submit a report identifying risks in the supply chain for high-capacity batteries, including electric-vehicle batteries, and come up with a list of policy recommendations to address these risks.

He also ordered the U.S Secretary of Defense Lloyd J. Austin III to submit a report identifying risks in the supply chain for critical minerals and other identified strategic materials, including rare earth elements and submit policy recommendations to address these risks.

The Secretary of Health and Human Services has been asked to submit a report identifying risks in the supply chain for pharmaceuticals and active pharmaceutical ingredients and policy recommendations to address these risks.

According to a White House fact sheet, supply chain reviews “must identify critical goods and materials within supply chains, the manufacturing or other capabilities needed to produce those materials, as well as a variety of vulnerabilities created by failure to develop domestic capabilities.”

During the coronavirus pandemic, U.S’s huge dependence on supply chains based in China for medical products came under sharp focus. The U.S is also faces shortage of semiconductor chips.