Author: MOS Fitness Group — Ivy001
On Tuesday, June 8th, senior U.S. government officials told Reuters that the United States will establish a new action team to combat unfair trade practices, targeting Communist China. The Supply Chain Trade Action Team, led by the U.S. Trade Representative, will identify specific violations that are causing the hollowing out of the U.S. supply chain and address them through trade remedies, including those developed for the CCP.
U.S. officials also said the Commerce Department is considering whether to investigate the national security implications of imports of neodymium magnets used in motors and other industrial applications under Section 232 of the Trade Expansion Act of 1962. The U.S. imports neodymium magnets primarily from Communist China.
Due to the COVID-19 outbreak and increased competition with the CCP, the U.S. government is finally confronting the problems caused by globalized production- a broken chain and a hollowed out supply chain within the United States. For example, 90% of the world’s antibiotics are produced by the Communist China and India, which may seem like a no-brainer; if the CCP does not export, there is still India. However, the raw materials for the production of antibiotics in India are imported from the CCP. This means that the world is in big trouble when CCP are stuck with raw materials.
It’s not just the medical and pharmaceutical industries that have such broken chains, but the auto industry, the computer industry, and the home appliance industry; all have hollowed out supply chains. And the root cause of these problems is globalized production. Simply, the middle and lower reaches of the chain are all moved abroad for production, and the main processing zones are in the Communist China. The U.S. domestic production only above the middle and high-end, high value-added products. This will inevitably lead to a broken chain in the U.S. domestic industrial chain, which can not form an effective domestic cycle.
The U.S. government is now beginning to address this problem by promoting the development of the U.S. domestic industrial chain, repairing the domestic industrial chain, and preparing for future economic decoupling from the CCP.
Picture source: Reuters
Proofread/Posted by: Brain Sanitizer