China dismissed efforts to shift U.S. supply chains toward alternative sources as unrealistic, hitting back hours after President Joe Biden signed an order to review how America buys strategic goods.
Chinese Foreign Ministry spokesman Zhao Lijian made the remarks Thursday in response to a question about the order, which will cover chips along with large-capacity batteries, pharmaceuticals and critical minerals and strategic materials like rare earths. Zhao said such measures “will not help solve domestic problems” and only harm global trade.
“China believes that artificial efforts to shift these chains and to decouple is not realistic,” Zhao told a regular news briefing in Beijing. “We hope the U.S. will earnestly respect market laws and free trade rules and uphold the safety and reliability and stability of global supply chains.”
Biden acknowledged Wednesday that the problem wouldn’t be solved immediately. The issue has taken on urgency with a global chip shortage that’s threatening to harm U.S. growth just as Biden seeks to rebuild an economy battered by the coronavirus. Some automakers are cutting workers’ hours due to the shortfall and unions are raising alarm about the prospect of layoffs.
Click here to read the full report from the Supply Lines newsletter at Bloomberg.com.
