US-centered reorganization of rare earths and medicines
It seems to strengthen cooperation with Korea, Japan and Taiwan
US President Joe Biden listens to a semiconductor chip at the White House on the 24th (local time). President Biden signed an executive order to review the supply chain conditions for semiconductors, electric vehicle batteries, and rare earths. Semiconductor chips are representative raw materials that American companies suffer from supply shortages. UPI Yonhap News “/>
US President Joe Biden listens to a semiconductor chip at the White House on the 24th (local time). President Biden signed an executive order to review the supply chain conditions for semiconductors, electric vehicle batteries, and rare earths. Semiconductor chips are representative raw materials that American companies suffer from supply shortages. UPI Yonhap News
US President Joe Biden ordered the administration to review the supply chain of semiconductors, electric vehicle batteries, rare earths, and pharmaceuticals on the 24th (local time). It is analyzed as an attempt to prevent China’s influence from increasing in these items and to build a US-centered supply chain.
President Biden signed an executive order that asked the administration to investigate the supply chain of these items for 100 days and make recommendations. In addition, it instructed six industries, including defense, health, information and communication technology, energy, transportation, and agri-food, to review their supply chain for one year.
Currently, the US is suffering from a shortage of semiconductor chips for vehicles. In the early days of the novel coronavirus infection (Corona 19), there was a shortage in supply of medicines. This is why President Biden ordered a supply chain review.
However, the executive order also has a strong character of’checking China’. The US relies on China for about 80% of rare earths. China is the No. 1 country in the production of electric vehicle batteries and is accelerating the pace of semiconductor independence. The interpretation is that the executive order is aimed at preventing China’s’rare-earth weaponization’ and preventing China’s rise in future technologies such as semiconductors and batteries.
The Bloomberg News quoted a government official and reported that “depending on the results of the supply chain review, the production of key items in the US may be encouraged or cooperation with allies may be continued. It also said that there could be changes in financial benefits and tariff and procurement policies. It is highly likely that the Biden administration will increase the production of semiconductors and batteries in the United States or strengthen cooperation with allies such as Korea, Japan and Taiwan.
“The hostile and predatory Chinese leadership is our biggest geopolitical test,” said William Burns, chief of the US Central Intelligence Agency (CIA), at a Senate approval hearing. It will be the key.”
Washington = Correspondent Ju Yong-seok [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution