This action of bringing together a bipartisan consensus to examine America’s supply chains of semiconductors, rare earths and other critical components does not seem to explicitly mention China. But it’s clear that this is an effort to reduce U.S. vulnerabilities to an increasingly assertive Chinese Communist Party and to make sure that a crucial industry–semiconductors–does not disappear from U.S. shores. The New York Times missed this development but the Wall Street Journal spotlighted it. I append a portion of the Journal story because it is behind a pay wall:
Biden to Address Chip Shortages, Supply-Chain Problems With Executive Action
The president plans to sign an executive order following a meeting on the issues with a bipartisan group of lawmakers
A Volkswagen in the making in Zwickau, Germany, last September. A semiconductor shortage has hamstrung car makers around the world.
PHOTO: MATTHIAS RIETSCHEL/REUTERS
WASHINGTON— President Biden plans to sign an executive order Wednesday directing a broad review of supply chains for critical materials from semiconductors to pharmaceuticals and rare-earth minerals, aiming to spur domestic production while strengthening ties with allies.
A chip shortage is squeezing auto makers in the U.S. and world-wide, and Biden administration officials have been working with industry to free up supplies. Cars use chips for numerous systems, including engine management, automatic braking and assisted driving.
“There isn’t kind of a magic bullet to solve the near-term problem,” a White House official who works on economic issues said in a briefing with reporters before Mr. Biden’s action. But the official said the auto problem—like shortages of Covid-19 gear—highlights the need for a comprehensive approach to supply-chain resiliency.
“We’re going to get out of the business of reacting to supply-chain crises as they arise and get into the business of getting ahead of future supply-chain problems,” the official said. “We’re not simply planning to order up reports.”
“To be competitive and strengthen the resilience of critical supply chains, we believe the U.S. needs to incentivize the construction of new and modernized semiconductor-manufacturing facilities and invest in research capabilities,” the letter read. “We believe the need is urgent and now is the time to act.”
Before signing the order, Mr. Biden is scheduled to meet with a bipartisan group of House and Senate lawmakers to discuss supply-chain issues that have grown more visible during the pandemic, the White House said.
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