President Joe Biden plans to sign an executive order on Wednesday to strengthen America’s supply chains in various sectors to strengthen the economy and protect workers, administrative officials said.
The executive order would strengthen the supply chains for critical goods, mainly in four main areas: pharmaceuticals, rare earth minerals, semiconductor chips and high-capacity batteries. Officials said the order was prompted in part by the huge shortage of personal protective equipment and issues regarding the supply chain during the coronavirus pandemic during the Trump administration.
The order is intended to supplement Biden’s earlier executive order to promote products manufactured in the United States to strengthen U.S. supply chains and ensure that critical materials are manufactured in the United States, an official said.
“This order is the next step for the president to invest in American workers,” the official said.
There have been reports of manufacturing shortages in the automotive and technology industries due to the pandemic, and a recent study by the American Society of Health-System Pharmacists suggested that trade restrictions and the pandemic could significantly disrupt the supply of health supplies.
Each of the four sectors identified by the order will undergo a 100-day investigation to assess vulnerability and areas for improvement. Other sectors identified by the government, such as biological preparedness, food production and transport, will be reviewed one year to help the government make mistakes and correct them.
Officials said they also see dual support from Congress to pass legislation to codify the basic elements of the order.
The order will not be targeted at China, the official said.
But officials have ignored a question about whether it is aimed at competing with China. This month, the government reviewed key elements of US policy toward China during the Trump administration and found ‘deep problems’ with its policy toward China.
For the first time since taking office this month, Biden spoke by telephone with Chinese President Xi Jinping and expressed, among other things, “fundamental concerns” about Beijing’s “coercive and unfair economic practices”.
