After nearly six months of severe supply constraints, the US government will assess the inefficiency and national security issues of semiconductor, battery and rare earth metal supply chains.
According to a draft executive order seen by CNBC, the assessment will analyze “the resilience and capabilities of the US manufacturing supply chain and defense industrial base” to support areas such as national security and emergency preparedness. The review will be conducted by Biden’s economic and national security teams.
According to the draft order, the Biden administration plans to review the gaps in the domestic manufacturing and supply chains that currently dominate or rely on “nations that have or may become unfriendly or unstable.”
The executive order is being finalized, and the White House can change its actual text when it is implemented.
The review will be divided into two parts. The first phase will include a 100-day review of the supply chain of high-priority items such as semiconductors, batteries and medical supplies. The second phase will expand the scope of the review to include areas such as public health, energy and transportation.
One year after the order is issued, the team will provide analysis and recommendations on possible actions. These may include trade route editing or diplomatic agreements.
Analysts expect that under President Biden’s leadership, relations with China will normalize. That was after a four-year trade war between China and the United States, marked by tariffs and export bans.
Although the executive order did not specifically mention China, President Biden stated that his government is ready to engage in “extreme competition” with China. The order will be one of Biden’s first practical efforts to support the US economy and national defense interests.
At the same time, it is reported that Apple is in the process of diversifying its supply chain and transferring part of its manufacturing industry outside of China. The Cupertino technology giant’s supply chain and production process are highly dependent on China, and the epidemic has highlighted this problem.
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This happens because many companies have cut production. This is because our government has spread in doom and frustration to the fact that the company knows nothing but the demand, except that it believes that demand will fall. These companies do not want to be troubled by too many suppliers and inventories, so they quickly cut suppliers because this is the fastest way to shut down. Then add all the rules and travel restrictions. Because the working distance between people is too short, these rules and travel restrictions will prevent the company from fully exerting its operational capabilities. At this point, all suppliers are falling behind the demand curve, and assuming that useful idiots in our government do not add obstacles on the road, they will not catch up until the end of the year. The problem now is that the government is just walking around and realizing that their suppliers cannot get the chips needed to make military equipment. Even if the chips are made in the United States, many of the raw materials used to make the chips come from China. Then, in fact, many transportation companies take the container ship offline for maintenance and repair, although this will reduce the time required. I just hope that the government will not create more problems, so that the problems will get worse.
Only the government can spend 100 days to find answers to questions that ordinary people can find in 5 minutes. Check, please.
Australia shipped all of it to China for refining. None of these tricky jobs. Thank you very much. Too much green and red tape.
Now that the parents have returned, we can continue now. A creepy uncle didn’t understand anything that didn’t want to put his cash in, and left the building.
Post time: Feb-22-2021