President Biden signed a New Executive Order to review US Supply Chains for Major Goods

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On Wednesday, US President Joe Biden signed an executive order to boost manufacturing jobs by strengthening US supply chains for advanced batteries, pharmaceuticals, critical minerals, and semiconductors. Point to be noted that the US has become increasingly reliant on imports of these goods, which was considered potential national security and economic risk. The Biden administration is looking to address the planned 100-day review and the possibility of increased domestic production. Biden will also look to work with international partners to ensure a stable and reliable supply chain. President Biden delivered his words at a White House ceremony and said, “These are the kinds of common-sense solutions that all Americans can get behind. It’s about resilience, identifying possible points of vulnerabilities in our supply chains and making sure we have the backup alternatives or workarounds in place”.

The White House officials also emphasized that the order would help to create manufacturing jobs. There are at least 12.2 million manufacturing jobs in the US, down from 17 million in 2000. President Biden’s team didn’t say how many manufacturing jobs could be created. The deputy director of the White House National Economic Council, Sameera Fazili said there will be spillover research and development and jobs in the services sector. The orders were also distinctly bipartisan as Biden met with Republican and Democratic legislators at the Oval Office on Wednesday before the signing. It is noteworthy that former President Donald Trump signed an executive order last year to boost US production of critical minerals. President Biden said, “This is a critical area where Republicans and Democrats agreed. It was one of the best meetings I think we’ve had so far and we’ve only been here about five weeks”.

President Biden added, “It was like the old days. People were actually on the same page”. Republican Sen. John Cornyn attended the meeting and said afterward that Biden was very receptive during the conversation. Cornyn said, “He said, we’re all in. We all understand this is important, not only to our economy but to our national security, because of these cutting-edge, high-end semiconductors. They operate on everything from the F-35 fifth-generation stealth fighter to our cell phones”. The coronavirus outbreak led to an initial shortage of masks, gloves, and other protective medical equipment. Automakers in the US and Europe are now experiencing a shortage of computer chips. Nearly every major automaker that produces vehicles in the US has cut production because of the shortage by canceling shifts, slowing assembly line speeds, or temporarily closing factories.