- President
Joe Biden plans to sign anexecutive order Wednesday to reviewUS supply chains . - The order would seek to boost US production of key goods and limit exposure to global disruptions.
- The US has experienced shortages of medical equipment and electric chips during the pandemic.
President Joe Biden plans to sign an executive order Wednesday meant to strengthen US supply chains.
White House officials briefed reporters about the plans late Tuesday. The move comes after damaging struggles for medical workers to secure enough protective equipment early in the coronavirus pandemic as well as a looming shortage in computer chips key to car manufacturing.
The order, officials said, will tell federal agencies to review several core supply chains and report back in 100 days.
They include:
- Pharmaceuticals.
- Rare-earth minerals.
Semiconductor chips .- Large-capacity batteries.
The last three items are vital for the tech and automobile industries.
Other key supply chains will be reviewed over a longer time frame of one year, officials said. They include public health, information-communications technology, transportation, energy, and food production.
One senior official said the order "takes a critical step in ensuring that America's supply chains can withstand any crisis as well as support jobs across the country."
The person added: "This is the first whole-of-government approach to promoting the resilience of America's supply chains from pharmaceuticals to foods. 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."
An official told reporters that as part of the review the government would examine whether goods being sourced abroad could be made in America as well as how to diversify supply chains.
The order dovetails with Biden's Made in America policy, which seeks to increase the number of US-made goods purchased by the federal government.
The announcement comes amid a global shortage in semiconductor chips - which are crucial for building goods such as cars and electronic equipment.
A surge in demand for goods such as tablets and a decline in demand for cars during the pandemic have caused a serious imbalance in supplies of the semiconductors, most of which are made in China. The shortage has disrupted production in several US automobile manufacturing plants.
The US also saw shortages of key medical equipment including personal protective equipment and ventilators early in the pandemic, as some manufacturers in Asia limited exports to satisfy need in their own countries.
The order represents part of Biden's review of the strength of the nation's COVID-19 vaccine supply chains, said the officials, with the administration seeking to ensure supplies are resilient for key medicines.
At the briefing, officials said goods sourced from China were not being specifically targeted, though they evaded questions on the details of exactly how the sourcing of some products would be changed.
"We are not singling out any country by name in this EO," one official said. "It's a range of products/sectors."
Relations between the US and China, a global manufacturing hub, deteriorated under President Donald Trump. Biden recently held his first call with Chinese President Xi Jinping, in which the White House said Biden challenged Xi on China's "coercive" practices and human-rights abuses.