FX.co ★ US reviews its supply chains to combat China’s abusive practices

China is notorious for neglecting the rules of fair trade. That is why the US wants to set up a “strike force” to strengthen its supply chains and develop countermeasures. The US authorities are going to review and adjust the country’s reliance on foreign partners for the supply of critical products, from semiconductors to electric car batteries. In addition, the US Department of Commerce is considering an investigation into the national security impact of neodymium magnet imports that are mostly supplied from China. US President Joe Biden ordered a review of key US supply chains in February this year. The focus was on essential pharmaceuticals and rare earth minerals. Notably, the "supply chain trade strike force" is not aimed exclusively at China. The new policy is part of a broader US administration strategy to make the US supply chain more resilient. The US has faced unfair trade practices from “a number of foreign governments.” According to US officials, “a number of Chinese industrial policies have contributed to vulnerable US supply chains.” In February, Joe Biden said that the US and its foreign partners should “hold China accountable for its economic practices.” He also accused Beijing of undermining “the foundations of the international economic system.”