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US to redefine supply chains, hoping to reduce technological dependence on China

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The US is highly dependent on other countries for high-tech products, and President Biden is looking for ways to reduce this dependence. Citing the LA Times, the source said the president has ordered a review of the supply chain for semiconductor products, “high-capacity” batteries and rare earths to ensure reliable access to them. Although China has not been named explicitly, anonymous officials said the US was “overly dependent” on the country. The goal, they said, is to “close the gaps” and create “diverse and sustainable” supply chains.

One example of the negative manifestation of dependence on a single supply chain is the situation with microcircuits for cars. As you know, their deficit forces automakers to restrict production and even suspend factories. It is believed that greater diversity in supply chains can remove these bottlenecks and reduce the risk of similar situations recurring.

It is unclear whether the United States will be able to meet this challenge. While companies like Apple may relocate manufacturing to Vietnam and otherwise reduce their dependence on China, other companies may not have much choice.

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