COVID-19 Exposes Danger To US Industrial Supply Chain From China Disruptions - Pentagon

WASHINGTON (UrduPoint News / Sputnik - 09th July, 2020) One of the biggest lessons learned during the novel coronavirus pandemic is that the United States is vulnerable to disruptions by offshore suppliers, particularly in adversarial nations such as China, US Defense Undersecretary for Acquisition Ellen Lord told a forum sponsored by the Brookings Institution.

"One of the sliver linings, frankly, to COVID-19 has been the fact that... what we now have is a much larger awareness throughout the United States and I think the world, as well as to the challenges we particularly have with China," Lord said on Wednesday.

During the coronavirus crisis, Chinese officials have threatened to limit supplies to the United States, not only of personal protective equipment, but also medicines manufactured in China, which is a leading manufacturer of drugs and drug ingredients to US pharmaceutical companies, according to media reports.

Lord also mentioned the US vulnerability to China as the world's No. 1 producer of rare earth materials needed to manufacture electronic components - supplies that Chinese officials have also suggested could be cut off for US manufacturers.

"We need to make sure we re-shore as much as possible," Lord said, adding that bringing as much of the defense industrial base back to US shores as is feasible while still relying on allies and partners as opposed to adversarial nations as suppliers.

Lord noted that Canadian, Mexican and European partners produce military hardware for the United States.

Ideally, the United States should have two suppliers whenever possible, one of which should be domestic, Lord said.