The US announced that it would impose efforts in removing the global industry supply chains from China. The economic destructions in the US drove the country's production and supply chain dependency away from the world's second-largest economy. Hence, a former senior US administration official claimed that the Trump administration is considering a shift to other friendly nations.
According to the undersecretary for economic growth, energy, and environment at the US State Department Keith Krach, the US government has been working on reducing dependence on China for its business supply chains over the last few years. He then added that the Trump administration is turbocharging the efforts.
Krach added that the country found it essential to understand the vital areas in which bottlenecks exist to enhance US security measures. He further added that the government would announce the new initiative to the public soon.
On the other hand, the US Commerce Department, State, and some US agencies have been looking for ways to push American companies away from sourcing and manufacturing from China. The efforts included the award of tax incentives and potential re-shoring subsidies to inspire these substantial changes. It was also revealed that the US government and its agencies are in unison with the decision. Agencies have been in talks with manufacturing companies and have looked into choices to produce the goods outside of China.
The Trump administration's China policy has been spurred by pro-trade advisers and China hawks. A senior US official then claimed that the pandemic heightened the worries of US companies about doing business with Asia's most robust economy. The official added that those who engaged in deals with China had been adversely and substantially affected by the country's economic damage that was opting for other alternatives is the best choice.
Trump also announced that he would allow a 25 percent cut on tax and new tariffs imposed on 370 billion USD Chinese goofs. US companies who are made to pay these tariffs have been complaining about the present rates before the imposition. They also contend that sales had substantially decreased when China imposed lockdown measures nationally.
The report also revealed that the Trump administration might impose sanctions against Chinese officials or companies who have close ties with Taiwan. However, discussions about moving the US companies' supply chains have then been aggressive and multi-lateral.
Secretary of State Mike Pompeo announced last April 29 that it is currently under negotiations with Japan, India, South Korea, New Zealand, and Vietnam to push the plan forward. He added that the communications included plans in restructuring the supply chains and prevent further disruptions.
