Biden plans order to bolster US supply chains, spurred by last year's scramble for COVID-19 medical gear and looming crisis in chips for electric cars
Evan Vucci/AP
- President Joe Biden plans to sign an Executive Order Wednesday to review US supply chains.
- The order will aim to boost US production of key goods, and limit exposure to disruptions.
- The US saw shortages of medical equipment and electric chips during the pandemic.
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President Joe Biden is plans to sign an Executive Order on Wednesday, aimed at strengthening US supply chains.
White House officials briefed reporters about the plans late Tuesday. The moves comes after damaging struggles under President Donald Trump to secure enough protective equipment to for medics to battle the coronavirus pandemic, as well as a looming shortage in computer chips key to car manufacturing.
The order, official said, will tell federal agencies to launch reviews of several core supply chains, to 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 wll be reviewed over a longer timeframe on 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. When we talk about critical supply chains are referring to the many materials and processes that are needed to ensure that Americans have access to the products we need."
"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 be looking at whether goods being sourced abroad could be made in America, and as well as how to diversify supply chains.
The order will dovetail with Biden's Made in America policy, which seeks to increase the number of goods made in the US purchased by the federal government.
The announcement comes amid a global shortage in semiconductor chips - which are crucial for building goods including cars and electronic equipment.
A surge in demand for electrical goods like tablets,and a decline in demand for goods like cars during the pandemic has 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 (PPE) protective gear and ventilators during the first wave of the coronavirus last year, as some Asian manufacturers were made to limit exports abroad in response to a surge in domestic demand.
The order is 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. It's a range of products/sectors," said one official.
Relations between the US and China, a global manufacturing hub, deteriorated under President Trump. Biden recently held his first call with China's President Xi Jinping, in which the White House said Biden challenged Xi on China's "coercive" practices and human rights abuses.
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