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June 14, 2021

Biden Administration Supply Chain Improvements Include Combatting Unfair Trade Practices

On June 8, the Biden administration released the findings of an interagency domestic supply chain assessment and outlined the steps it will take to strengthen U.S. critical supply chains, shore up domestic manufacturing, and move away from relying on countries like China for critical inputs. Read the fact sheet here.

The report includes policy recommendations and highlights work that is underway to address supply chain vulnerabilities, including:

  • Steps to strengthen U.S. manufacturing capacity for critical goods;
  • Recruit and train workers to make critical products here at home;
  • Invest in research and development that will reduce supply chain vulnerabilities; and
  • Work with America’s allies and partners to strengthen collective supply chain resilience.

As CNBC reported, “along with these efforts to bolster domestic supply chains, the Biden administration also laid out new steps to combat ‘unfair foreign trade practices.’” Specifically, the White House said it will create a “trade strike force,” to be led by the Office of the U.S. Trade Representative, that will identify “unilateral and multilateral” enforcement actions the United States can take to punish countries that it believes are engaging in unfair trade practices.

A senior administration official told CNBC the strike force will focus on developing U.S.-China trade policies.

Holland and Knight law firm has more on these efforts here.

In related news: the U.S. Senate has approved a $250 billion bill that will drive new investment in U.S.-based research and development, semiconductor manufacturing, and other important areas where the United States faces increasing competition from China. In addition to the funding, the legislation, which must still be approved by the U.S. House, opens the door for new sanctions targeting China over its human rights abuses. Read more about the legislation here.