On Wednesday, the White House endorsed a proposal to tackle competition with Communist China, saying that President Joe Biden welcomed the bipartisan bill to strengthen the U.S. supply chain. 

White House press spokesman Jen Psaki said: We look forward to working with Congress to shape further this legislation to renew America’s global leadership in science and technology and make sure we develop and manufacture the future technologies.

Sen. Mark Warner, chairman of the Senate Special Committee, said at a hearing last Wednesday (April 17) that the U.S. intelligence system and law enforcement at all levels must focus on advanced technologies that threaten the U.S. economy and global leadership. He gave an example of Huawei’s launch of high-quality and low-cost 5G technology in 2018, which caught the United States and its allies off guard. It took great efforts to prevent Huawei 5G from becoming the future global communication standard, which saved the United States’ communication security and allies.

Avril Haines, director of the National Intelligence Agency, and William Burns, director of the Central Intelligence Agency, expressed similar views that despite some achievements by intelligence agencies, the entire U.S. government is far from recognizing the technology in the Communist Party of China. The challenge. U.S. intelligence systems should focus on several technical areas related to improving the competitiveness of the United States, including semiconductor manufacturing, artificial intelligence, quantum computing, and 5G.

The intelligence agencies agreed that the commanding heights of the “high-tech field” should be firmly seized and have the strength to compete with the Communist Party of China.

 “high-tech” is related to the United States’ national security, and the development of high-tech must master the technology of designing chips and manufacturing chips.

Whether it is smart cars, broadband networks, supercomputers, artificial intelligence, or satellite communications, chips are the core of the entire technological, strategic layout.

The United States has mastered the core technology of chip design, but chip production is a global supply system, and the ability to design chips alone is far from enough. For example, TSMC and Samsung are the two largest foundries in the world to produce chips. Rare earth, the essential material element for chip production, is provided by the Communist Party of China to the world, accounting for 90% of the world’s rare earth market supply. From the above two points, at least the United States is now heavily dependent on Taiwan and the Communist Party of China for chip production.

For the U.S., even without taking politics into account, from a national security perspective alone, TSMC’s temporary irreplaceable position in chip manufacturing necessitates the protection of Taiwan, which is the lifeline to protect U.S. high technology. And from the increasingly tense diplomatic relations between the United States and China over the past year. If the situation continues to deteriorate, the Communist Party may not supply rare-earth to the United States at any time. The “product supply chain” for chip manufacturing is a matter of priority.

Aware of this, the Biden administration held a nationwide chip video summit in Washington on April 12 to make a strong appeal to the high-tech industry presidents to solve the problem of chip shortages. Due to the impact of the global epidemic, the supply of chips is seriously insufficient. Apple’s mobile phone has delayed the release of new products, and the increase in the number of people working at home has increased the demand for home computers. To this end, Washington has pledged $50 billion in financial support for the chip industry.

It isn’t easy to establish a self-sufficient supply chain in the United States in the short term. “It is no exaggeration to say now that there is a crisis in our supply chain,” U.S. Commerce Secretary Gina Marie Raimondo said at a congressional hearing on April 20. The share of the U.S. semiconductor manufacturing industry has dropped to 12 percent from 37 percent in 1990, according to a September 2020 report released by the Semiconductor Industry Association and Boston Consulting Group. For American semiconductor production, the situation is precarious.

With no time to lose, the U.S. Department of Commerce and the Department of Justice took action to investigate the Communist Party of China enterprises trying to penetrate key supply chain areas in the United States. The U.S. Department of Commerce issued a subpoena to an unnamed Chinese Communist Party company on Tuesday to assess whether it poses any risk to U.S. national security. The Department of Justice is also reviewing it strictly. The Department of Justice said that it had issued similar summonses to several Chinese Communist Party companies that provide information and communication technology services in the United States since March this year to determine whether they pose a threat to national security.

But as far as rare earth industrial production is concerned, Washington is difficult. Unlike  China, which plunders nature for U.S. dollars regardless of the people living environment, the American people’s awareness of environmental protection is deeply rooted in the bone marrow.

The corresponding laws formulated by the government to protect the environment are strict. Unfortunately, mining rare earth is an industrial activity that can significantly impact the natural environment. Due to the increasing pressure of environmental protection at home, many Western countries have transferred the industry of producing rare earth to Communist China. Now, despite the ability of the United States to exploit rare earth, environmental protection is an insurmountable obstacle. Therefore, the Biden administration is considering developing new technologies to produce rare-earth alternatives, significantly reduce the environmental impact of rare earth mining through new processes, and protect the natural environment when building the Great Wall of the chip supply chain.

In short, it is now necessary for national security to ensure that the United States and its allies must completely control the complete supply chain of chip production. In contrast, Communist China can hold any link in the supply of materials and production technology. Otherwise, the United States will be subject to others. Only when the supply chain of crucial technological fields is wholly pulled back into the hands of the United States and its allies, the United States can ensure that it has an overwhelming advantage in competition with the Communist Party of China.

Himalaya Moscow Katyusha (RU) Ladin