The shortage of chips has led to U.S. automakers and other manufacturing industries being forced to cut production. To get rid of the over-reliance on mainland-made chips and other strategic materials supply chain, Biden signed an executive order on the 24th, calling for a 100-day review of the supply chain of four key products and a 1-year review of six sectors: defense, public health, communications technology, transportation, energy and Food production.
Biden said that in order to be sure that the United States can meet all the challenges of this era, the best way to ensure the competitiveness of the United States is through investment in domestic.
However, Biden also confessed that the executive order can not immediately solve the problem of chip shortage. For this reason, the United States is also engaging with allies and semiconductor manufacturers to increase production.
In addition to chips, the United States is currently 85% of rare earths and 90% of medical supplies are dependent on imports from the mainland.
Former U.S. President Donald Trump‘s administration has warned that heavy reliance on the Chinese Communist Party to provide vital supplies would pose a national security threat.
To address this issue, according to the draft executive order, Washington will seek cooperation with Taiwan, Japan and South Korea on chips (semiconductors), and with Asia-Pacific economies, including Australia, on rare earths.
Peter Harrell, senior director of international economic relations and competitiveness at the White House National Security Council, explained the contents of the executive order at a regular press conference, and was asked whether Taiwan had accepted the U.S. request to help increase the supply of chips, saying that Taiwan is an important partner of the United States, and that the United States has launched a constructive dialogue with Taiwan. And according to reports, Taiwan’s chip leader TSMC has now pushed forward with the United States and Japan to cooperate in the production of chips.
The draft executive order also mentions that the U.S. also plans to share information with allies in important material chains to support each other’s production, to ensure that in case of emergency, inventory and capacity can be shared quickly, and the U.S. can also require cooperative allies to reduce their investments in the mainland.
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