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U.S. to review supply chains, hoping to reduce technological dependence on China

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Image source: industry-hunter.com

The United States is heavily dependent on other countries for high-tech products, and President Biden is looking to reduce this dependence. Referring to the LA Times, the source said that the president ordered a review of the supply chains of semiconductor products, "high-capacity" batteries and rare-earth cells to ensure reliable access to them. Although China was not explicitly named, anonymous officials said the US was "overly dependent" on the country. The goal, they say, is to "close the gaps" and create "diverse and sustainable" supply chains.

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

It is unclear whether the US will be able to cope with this task. While companies like Apple may move production to Vietnam and otherwise reduce their dependence on China, other companies may not have much choice.

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