Biden To Order Review of US Reliance on Overseas Supply Chains For Semiconductors, Rare Earths
President Joe Biden will direct his administration to conduct a review of key U.S. supply chains including semiconductors, high-capacity batteries, medical supplies and rare earth metals. From a report: The assessment, which will be led by members of both Biden’s economic and national security teams, will analyze the “resiliency and capacity of the American manufacturing supply chains and defense industrial base to support national security [and] emergency preparedness,” according to a draft of an executive order seen by CNBC. The text of the executive order is being finalized and the ultimate language could vary from the current draft. The White House also plans to review gaps in domestic manufacturing and supply chains that are dominated by or run through “nations that are or are likely to become unfriendly or unstable.”

Though the order does not mention China, the directive is likely in large part an effort by the administration to determine how reliant the U.S. economy and military are on a critical group of Chinese exports. Biden said earlier this month that his White House is gearing up for “extreme competition” with China. The pending executive order is one of the administration’s first tangible efforts to evaluate and shore up American business and defense interests through a thorough review of where, and from which countries, it receives key raw materials. Some of the commodities and components listed in the order included rare earth metals, a group of minerals used in the production of a variety of advanced technologies, including computer screens, state-of-the-art weapons and electric vehicles.

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