Biden to order review of U.S. reliance on overseas supply chains for semiconductors, rare earths - CNBC

FILE PHOTO: U.S. President Joe Biden participates in a CNN town hall in Milwaukee, Wisconsin, U.S., February 16, 2021. REUTERS/Leah Millis

(Reuters) - U.S. President Joe Biden will direct his administration to conduct a review of key U.S. supply chains including semiconductors, high-capacity batteries, medical supplies and rare earth metals, CNBC reported here on Thursday.

The White House plans to review gaps in domestic manufacturing and supply chains that are dominated by or run through “nations that are or are likely to become unfriendly or unstable,” the CNBC report added, citing a draft of an executive order seen by the portal.

A White House spokesperson later told Reuters the information in the CNBC story did not reflect the current state of discussions. The White House spokesperson noted that its review will be aimed at ensuring these countries will not be able to weaponize U.S. supply chains against the United States.

According to the CNBC report, though the order does not mention China, the directive is likely in large part an effort by the administration to determine how reliant the U.S. economy and military are on Chinese exports.

The CNBC report added that the text of the executive order was being finalized and the ultimate language could vary from the current draft.

Reporting by Aakriti Bhalla in Bengaluru and Andrea Shalal in Washington; Editing by David Gregorio; Editing by Chizu Nomiyama and David Gregorio