President Joe Biden will sign an executive order aimed at cutting U.S. reliance on foreign countries for critical supply chains like medical equipment and pharmaceuticals, the White House announced Wednesday.
National Economic Council Peter Harrell made the announcement at a Wednesday press briefing alongside Deputy Director of the National Economic Council Sameera Fazili. The order is a reaction to the scarcity of personal protective equipment (PPE) and other medical equipment in the early months of the pandemic, when the U.S. was relying on manufacturers from other countries. (RELATED: Biden Will Sign Supply Chain Executive Order Specifically Targeting Semiconductors)
“Even before the COVID crisis, the economy was not working for most Americans,” says Sameera Fazili, deputy director of the National Economic Council. Today’s “executive order moves the government to being more prepared” for future supply chain risks. pic.twitter.com/Yh6unfExYt
— Steve Herman (@W7VOA) February 24, 2021
Will be using a mix of incentives to encourage production of critical supply chain elements in US amid a range of tools, says @petereharrell, senior director for international economics and competitiveness. “All tools are on the table for this administration.” pic.twitter.com/8uC8adUWMx
— Steve Herman (@W7VOA) February 24, 2021
Biden’s order will build off of efforts from former President Donald Trump’s administration that aimed to make U.S. pharmaceutical production more independent. Biden’s order, however, targets the semiconductor industry, one in which China is seeking to make great strides.
The order will contribute to Biden’s long term foreign policy goal of more effectively competing against China, which has begun flexing its economic weight more aggressively on the world stage.
“Clearly we are looking at the risks posed by dependence on competitor nations, but that is only one of a range of risks we are looking at,” an administration official told Politico on Wednesday.