U.S. Needs to Diversify Technology Supply Chain, Experts Say
Top government officials have urged the United States to diversify its technology supply chain to maintain its technological advantage and prevent the Chinese Communist Party from gaining access to critical emerging technologies. Witnesses at a House Foreign Affairs Indo-Pacific Subcommittee hearing emphasized the need to protect technologies such as semiconductors, citing concerns about China's military modernization. Efforts are being made to strengthen deterrence and diversify the supply chain outside of Taiwan, including through the CHIPS and Science Act, which incentivizes semiconductor makers to establish operations in the US. The goal is to ensure US-developed technology is protected and allies jointly develop and manufacture critical technologies.
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FAQ: U.S. Needs to Diverse Technology Supply Chain, Experts Say
Q: Why does the U.S. need to diversify its technology supply chain?
A: The U.S. needs to diversify its technology supply chain to maintain its technological advantage, ensure the availability of crucial technologies, and reduce dependence on single sources or geographic locations which can be vulnerable to disruptions. This diversification is also essential for national security and economic stability.
Q: What are some recommended ways to diversify the technology supply chain?
A: Experts recommend multiple strategies, including developing the U.S. workforce, improving manufacturing capacity, and ensuring geographic diversity. Policies may range from government investments in technology sectors to fostering international trade relationships that encourage diversification.
Q: Has the Biden Administration taken any steps to address supply chain issues?
A: Yes, the Biden Administration has acknowledged the importance of supply chain resilience and has launched initiatives such as the Supply Chain Disruptions Task Force to address short-term supply chain discontinuities and has proposed investments under the President's American Jobs Plan to bolster longer-term supply chain structures.
Q: What role does the U.S.-EU Trade and Technology Council play in diversifying supply chains?
A: The U.S.-EU Trade and Technology Council helps to address supply chain disruptions by working collaboratively to diversify global supply chains and create new opportunities, minimizing risks associated with overconcentration and trade barriers.
Q: Are there any specific technological areas where supply chain diversity is crucial?
A: Yes, semiconductor supply is one critical area where experts have suggested policy consideration for improving supply chain resilience. Recommendations include investing in domestic production, workforce development, and fostering supply chain geographic diversity.
Q: What international efforts are being made to minimize supply chain risks?
A: Initiatives like the EU-US Trade and Technology Council support trade and investment diversification to minimize risks. Export controls have also been established to protect the transfer of sensitive high-tech intellectual property, enhancing economic security through multilateral collaboration.
Q: How are global supply chains being reassessed in the post-pandemic world?
A: The disruptions from the U.S.-China trade war and COVID-19 pandemic have highlighted the fragility of global supply chains, leading manufacturers and governments to reassess and plan for more resilient and diversified supply networks to withstand future shocks.