China and the Supply Chain: A Comment on the June 2021 White House Review

Article, Refereed Journal
Institute for New Economic Thinking

In January 2013, the Obama White House released a White Paper on "National Strategy for Global Supply Chain Security: Implementation Update." It was a short document, only 22 pages, almost wholly focused on the security of transport — of ships, air freight, the mails — against terrorism and other threats. What traveled through the supply chain, and from where, does not appear to have been a major concern.

In June 2021, the Biden White House published a "100-day review" entitled "Building Resilient Supply Chains, Revitalizing American Manufacturing and Fostering Broad-based Growth." It is focused on a very different concept of what the "supply chain" is; the term now encompasses the entire spectrum of upstream production. The Biden review takes these up in four areas: semiconductors, high-capacity batteries, critical minerals, and pharmaceuticals.

One might ask, why these four areas and not others? There is no clear answer, and it may be that choice was mainly bureaucratic. The review was compiled from separate reports by four cabinet departments: Commerce, Energy, Defense, and Health and Human Services. Had the Department of Agriculture been asked, or the Department of Transportation, one might have gotten different choices. Petroleum comes to mind. Or natural rubber — the linchpin of World War II in the Pacific.

Research Topic
Economic Policy