President Joe Biden Announces New Measures to Strengthen American Supply Chains
President Joe Biden unveiled a new council aimed at fortifying and safeguarding American supply chains. To counter the disruptions caused by the COVID-19 pandemic, the U.S. must address vulnerabilities and mitigate price spikes that contribute to inflation.
Building Resilient Supply Chains
Transportation Secretary Pete Buttigieg highlighted the necessity of making U.S. supply chains more resilient and less susceptible to future disruptions. The White House has introduced several initiatives, including utilizing the Defense Production Act to increase domestic production of “essential medicines.”
Reducing Reliance on Foreign Suppliers
The Department of Defense will issue a report on pharmaceutical supply chain resilience, aiming to reduce dependence on high-risk foreign suppliers. The federal government plans to invest $35 million from Health and Human Services to bolster domestic medicine production.
Awareness of Supply Chain Importance
President Biden acknowledged that supply chains were not previously a topic of widespread discussion, but their significance has become evident. The Inflation Reduction Act and CHIPS and Science Act, which include tax credits for chip manufacturing investment in the U.S., demonstrate the need to prioritize supply chains.
Revitalizing Microchip Manufacturing
The U.S. currently produces a small fraction of the global supply of microchips, relying heavily on Asian production. President Biden emphasized the importance of bringing microchip production back to American soil, citing significant investments by semiconductor manufacturers in U.S. plants.
Strengthening Coordination and Investment
The government aims to enhance collaboration between public and private entities in supply chain management and production. The Department of Energy, Department of Agriculture, and Department of Defense will invest hundreds of millions of dollars to stimulate and reinforce local production.
Ensuring National Security
The plan also considers the national security implications of supply chain vulnerabilities. The Department of Defense will develop a Supply Chain Mapping Tool to analyze supplier data for weapon systems, identify vulnerabilities, and devise mitigation strategies.
Competing with China
Sen. Mark Warner stressed the importance of maintaining a competitive edge against China, particularly in critical areas like AI and the mineral supply chain.
Republished with the permission of The Center Square.
Read More of this Story at altoday.com – 2023-11-28 11:41:45
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