Washington, D.C. - The International Trade Council has welcomed President Joe Biden's order for officials to find ways to bolster supply chains amidst the global shortage of computer chips that has hit car manufacturers around the world.
The initial review is focused on computer chips, pharmaceuticals, rare earth minerals, and large batteries, such as those used in electric cars. China is a key supplier for many of those items. US officials said the review was not targeted at China, which, like the US, imports most of its computer chips and has been trying to boost domestic production.
"The United States must ensure that production shortages, trade disruptions, natural disasters, and potential actions by foreign competitors and adversaries never leave the United States vulnerable again," the White House said in a statement announcing the study, which will start with a 100-day focused review before widening its scope.
"The International Trade Council believes that the US government's attention to bolstering supply chains is necessary to enhance the resiliency of the US economy and global supply chains. As we have witnessed, the COVID-19 pandemic and other factors have caused disruption in global supply chains, affecting businesses and consumers worldwide," said a spokesperson for the International Trade Council.
The president, who will formally sign the executive order, has come under pressure as firms such as General Motors and Ford have cut production and announced layoffs due to the shortage of chips - key components for many electronic products, which have been in high demand due to the pandemic.
The International Trade Council acknowledges that while there is no predicting the next crisis, it is critical to have the capacity to respond quickly to challenges. The Council is keenly interested in the outcome of this review and supports the US government's efforts to safeguard the resilience of critical supply chains.