Explained: US constitutes Task Force to curb China's Supply Chain dominance

Biden administration has announced that the US will be forming a strike force or China Task Force as a counter to the challenges posed by Beijing. Know the relevance and recommendations here
Created On: Jun 10, 2021 18:15 IST
Modified On: Jun 10, 2021 18:31 IST
China task force in US
China task force in US

China Task Force: Why in the News?

The US President Joe Biden administration has announced that the US will be forming a task force to target the unfair trade practices of China and other competitors. This is also being called as China Task Force in US. 

This decision came after a 100 day review of supplies like computer chips in the country. The task force will be composed of 

  1. Civilian experts
  2. Military experts 

It would also require bipartisan cooperation in Congress and other strong alliances. Take a look at the details below

About the Bill: China Task Force in US

The US Senate voted on 8th June for a Bill to counter China's growing economic and military prowess. The Bill is estimated to be around 250 billion dollars. The United States would be spending a huge amount of money in research and development. 

The Bill also provides for 300 million dollars to counter the political influence of the Chinese Communist Party. 

The US legislators both Democrats and Republicans, believe that investments in advanced technologies are likely to provide the US a lasting edge over its geopolitical adversary China. 

The US legislators both Democrats and Republicans, believe that investments in advanced technologies are likely to provide the US a lasting edge over its geopolitical adversary China. 

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Relevance of China Task Force:

  1. As Covid 19 pandemic has resulted in an economic crisis, there has been structural weakness observed in various domestic markets and the international arena. This in turn threatens the supply chains on both arenas. Such Supply Chains pose a threat to America's economic and national security. 
  2. The administration would also be looking for any violation of rules that have damaged global supply chains. 
  3. The Bill would also help to look for any such bottlenecks in the sectors like semiconductor, construction or transportation and agriculture etc. 
  4. Corrective policies would be formulated within a year of the order. 

Functions of the Task Force 

  1. The task force would be led by the Secretaries of Commerce, Agriculture and Transportation. 
  2. The major function of the force is to reduce the reliance of the United States on outside or international products. 
  3. It would assess and formulate a plan for removing bottlenecks in those industries. 
  4. This new task force would bring together all the stakeholders to find out further course of action that are required by private companies rather than Government. 
  5. Other measures would be provided by the energy department. It would be about 17 billion dollars as loans for creating a shift towards electric cars. 
  6. The agriculture department of the US would be spending approximately 4 trillion dollars to make food supply chains stronger and more viable. 
  7. Another service would be provided by the US Department of Commerce, which includes the beginning of an investigation under Section 232 into the national security impact of neodymium magnets that were imported from China. These devices were used in motors and in defence. 

Reason of Review of Supply Chain

US President, Joe Biden ordered the review in February 2021. He asked the government agencies to report on the country's access to essential goods like rare earth materials used in phones and electric vehicle batteries. 

The US faced difficulties in getting medical equipment during the Coronavirus pandemic, which is why the review was ordered. The US also faced computer chip shortage and stalling car production. 

Also there was a rise in demand for television phones and gaming consoles, all of which use semiconductor chips.IBM and Cisco said the disruption could last upto two years. 

Although the US had not accused China of anything directly, the world is still able to understand the implicit attacks. The review report suggested that unfair trade practices from some foreign governments have been the reason for this review. 

Also unfair trade practices included government subsidies and forced intellectual property transfers.

Reactions to China Task Force: 

China's reaction was very arrogant, calling the US naive enough to think that it could lead the global system from a position of strength as the world has shifted from unipolar to multipolar structure. Not just China but Russia also made stark comments on US constituting a task force and threatening other countries. 

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