The Biden government has set up a striking force to confront China on trade issues

The US President’s government announced, on Tuesday, that the United States will target China with a new “strike force” to combat unfair trade practices. Joe Biden, presented the findings of a report on the country’s access to critical products, from semiconductors to electric vehicle batteries.

The Trade Supply Chain Strike Force, led by the US Trade Representative, will look for specific violations that have contributed to the “emptying out” of supply chains that could be addressed through trade remedies, including toward China, senior administration officials told reporters.

Those leaders also said the US Department of Commerce is considering launching a Section 232 investigation into the impact on national security of imports of neodymium magnets used in motors and other industrial applications, which the United States largely sourced from China.

USA President , Joe BidenIn February, it ordered a supply chain review, requiring government departments to report within 100 days about risks to US access to critical elements such as those used in pharmaceuticals, as well as minerals from rare earth elements, which the country relies on foreign sources.

Although the review was not explicitly directed at China, it is part of a broader strategy by the Biden administration to boost America’s competitiveness in the face of economic challenges posed by the world’s second largest economy.

said US Commerce Secretary Gina Raimondo, who will unveil the review at the White House on Tuesday.

The United States had serious problems obtaining medical equipment during the Covid-19 pandemic and is now experiencing severe bottlenecks in a number of areas, including computer chips, hampering production of goods such as cars.

US government departments are required to issue more comprehensive reports one year after Biden’s request, identifying gaps in domestic manufacturing capacity and measures to address them.

A senior official said the United States faced unfair trade practices by “a number of foreign governments” in all four supply chains included in the initial review, including public subsidies and forced transfers of intellectual property.

“It is clear that a number of Chinese industrial policies have contributed to the weakness of US supply chains,” the senior official said.

This source added that the United States does not intend to “wage trade wars with our allies and partners,” noting that the strike force would focus on “very specific products.”

However, the leaders provided a small update on measures taken to immediately reduce the chip supply shortage, noting in a fact sheet that the Commerce Department would “facilitate the flow of information” between chip makers and end users and increase transparency, a move that Reuters previously reported. day.