Feb. 27, 2021 - Epoch Times
05:10
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| Time | Text |
|---|---|
| On February 24, President Joe Biden signed an executive order to review the security of America's supply chains in key areas. | |
| Chinese media cited reports and experts as saying the move will reduce the dependence of key industries on China and will shift supply chains out of China, with the biggest impact on technology decoupling. | |
| Biden signed an executive order on February 24, launching a 100-day review of the supply chains of four key products. | |
| Semiconductor chips, high-capacity batteries for electric vehicles, rare earth minerals, and medical equipment. | |
| According to Nikkei Asia, the United States will develop a supply chain strategy to win itself off China. | |
| Through this program, the United States and its allies will build reliable and resilient supply chains that can share information and seek complementary production models. | |
| Washington is expected to pursue partnerships with Taiwan, Japan and South Korea in the semiconductor sector and Asia-Pacific economies, including Australia, in rare earths. | |
| Invited by the United States, Taiwan Semiconductor Manufacturing Company, TSMC, committed $12 billion last year to build a plant in Arizona to make military chips. | |
| Mass production is expected in 2024 with US subsidies. | |
| The Japanese government has also set aside $1.9 billion to invite TSMC to set up a chip plant in Japan and cooperate with Japanese companies. | |
| Li Hongqing, director of the Information and Strategy Institute in Washington, said it shows that the Trump administration's sanctions on chips are working. | |
| When Trump was the president, he already started to do this work, with the chip industry being the most obvious. | |
| After September 15 last year, Huawei and SMIC were cut off from the supply. | |
| Huawei's 5G mobile phones went almost out of stock due to lack of chips. | |
| It was the result of inevitable technological competition. | |
| On the electric car battery side, Tesla is rumored to be looking to take a stake of around 10% in South Korea's LG Chem. | |
| Tesla's recent expansion plan in Texas also invited Taiwanese suppliers to set up factories in the United States. | |
| In the case of rare earths, the United States imports about 80% of its rare earths from China, raising concerns in the Defense Department. | |
| Linus, Australia's largest rare earth producer, signed a contract last month to build a new facility in Texas to process 5,000 tonnes of rare earths per year, funded by the US Department of Defense. | |
| Over reports that Beijing intends to target the United States by restricting exports of rare earths, Bloomberg columnist David Fickling Writes that the CCP's weaponization of rare earths is bound to backfire as governments accelerate supply chain diversification. | |
| According to a report by Chinese media Caixin, as early as last April, Larry Kudlow, then White House National Economic Council director, said the policy of attracting US companies back from China had been put on hold as the epidemic spread around the world and production capacity in developed countries stagnated, causing some supply chain transfers to pause. | |
| Wang Tao Chief China Economist at UBS, Union Bank of Switzerland, was quoted as saying that in the short term, a sustained supply chain shift would have a direct negative impact on manufacturing investment, while in the long term, decoupling of the technology supply chain would be the most worrying. | |
| The Biden administration may be able to ignore the 100-day review period and take action immediately. | |
| I don't quite understand the 100-day review. | |
| Given the Trump administration's strong counterattack against the CCP, it has gone on for so long. | |
| The matter should have been sorted out long ago. | |
| All that remains is action. | |
| Biden has now added another 100 days for nothing. | |
| I can only say that the executive order is a gesture. | |
| In fact, he probably doesn't want to take action at all. | |
| It's just for show. | |
| Li Hongqing believes that judging from the Biden administration's positioning of the US and China as a competitive relationship, it's bound to bring the return of the industrial chain and have a negative impact on China's economy. | |
| Xi Jinping has used the word pinching the neck several times. | |
| Chips are a very critical point for China's scientific and technological development, especially for the overall industrial layout and development of the IT industry, because in the next few years, China's chip industry will not have an explosive breakthrough. | |
| Many insiders have demonstrated this. |
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