Here’s how Biden trumpets China on rare earths, batteries and chips
Biden orders a review of supply chains to reduce dependence on rivals (China first) for four sectors: from rare earths to semiconductors, from pharmaceuticals to batteries. All the details
Biden is running for cover to protect the US economy from any shortages of critical imported components. That is pharmaceuticals, rare earth minerals, semiconductor chips and batteries.
Today the President of the United States will sign an executive order to review supply chains.
The president wants federal agencies to look into US dependence on rivals in essential sectors. Each of the four industries identified by the ordinance will undergo a 100-day review to assess vulnerabilities and areas for improvement.
Officials said the order stems, in part, from the widespread shortage of personal protective equipment. And from the supply chain problems at the start of the coronavirus pandemic during the Trump administration.
However, the White House move comes after news that China is considering whether to limit the export of rare earth minerals to the United States.
The US war industry relies on rare earths. Like Lockheed Martin for its fifth generation F-35 fighter. The aircraft relies on rare earths for critical components such as electrical power systems and magnets. According to a Congressional Research Service report, each F-35 requires 417 kg of rare earth materials. And China controls about 80% of the market for those minerals.
All the details.
THE EXECUTIVE ORDER THAT BIDEN WILL SIGN
US President Joe Biden prepares to sign an executive order to review US supply chains.
The four sectors cover: large-capacity batteries, pharmaceuticals, essential rare earth minerals and semiconductors that power automobiles, telephones, military equipment and other goods.
The Biden administration hopes to address the problem with a 100-day government review of potential vulnerabilities in US supply chains.
USE MORE AND MORE EMPLOYEES FROM OUTSIDE AND FROM BEIJING
The United States has become increasingly dependent on imports of these goods, which poses a potential economic and national security risk.
China in particular is a dominant supplier to the United States of pharmaceutical ingredients, electronic components and rare earths, which are used in high-tech products such as combat aircraft (the aforementioned F-35s), smartphones and wind turbines.
SECTORS AFFECTED BY THE REVIEWS
In addition to the 100-day review of four supply chains, Biden's executive order will also require six industry-specific supply chain reviews, including defense, public health and organic preparation, energy and food production.
WORKING WITH PARTNERS
At the same time, Biden will also look to work with international partners to ensure a stable and reliable supply chain.
In fact, White House officials pointed out that building America's supply chains would not mean America going it alone. Rather the US would work with allies as part of efforts to address common weaknesses.
A NON-ANTI-CHINA ORDER ACCORDING TO THE OFFICIALS
The executive order is not an anti-Beijing move, according to the White House. "We really see it as a resilient supply chain executive order, not an executive order for China," an official told the media. "We are clearly examining the risks posed by dependence on competing nations, but this is just one of a number of risks we are looking at," the Biden administration official said.
WHAT CHINA IS DOING
As we said at the beginning, China is considering whether it can harm US defense contractors by restricting supplies of industry-critical rare earth minerals.
According to the Financial Times , industry executives said Chinese government officials asked them how companies in the US and Europe would be affected if China restricted rare earth exports.
As the New York Times pointed out , China's dominance in global supply chains for critical products like medical masks and raw materials had already raised deep concerns that the Beijing government might cut the United States out.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/ecco-come-biden-trumpeggera-contro-la-cina-su-terre-rare-batterie-e-chip/ on Wed, 24 Feb 2021 15:28:05 +0000.