China Panel Proposes U.S. Supply Chain Agency
An annual report to Congress released this week recommends creation of executive branch agency to coordinate U.S. efforts for securing domestic supply chains, including semiconductors and rare earth elements.
The recommendation by the
calls for a establishing an Economic and Security Preparedness and Resilience Office. The unit would oversee interagency efforts to strengthen U.S. supply chains “in the context of the ongoing geopolitical rivalry and possible conflict with China.”
Among the proposed agency’s duties would be developing a framework for assessing supply chain resilience and developing “risk mitigation efforts.”
Addressing the status of U.S.-China technology competition, commission members said it was too soon to judge how
will influence the rivalry. Final implementation of proposed restrictions on technology sales to China won’t be completed until next year, they noted.
“We’re really not in a position to evaluate whether U.S. policy has changed the trajectory of the U.S.-China economic competition,” said Commissioner
. “China has obviously been catching up technologically for a number of years [but] the U.S. is just starting to respond in a race that China has been running for years.”
U.S.-China Economic and Security Review Commission:
Taiwan Chip Engineers Leaving China
Taiwanese semiconductor engineers who in recent years flocked to China, lured by prospects of better pay and job opportunities, are reportedly beginning to return home.
Weary of Beijing’s unyieldingly Covid-19 containment policy and concerned over the implications of the geopolitical dispute with the U.S., the engineers are abandoning China, the
New York Times reported.
Returnees reported battle scars from their time across the Taiwan Straits, including unfulfilled promises of broader job experience. The Chinese chip sector, it turns out, lacks the varied opportunities many Taiwanese engineers were expecting.
However, the primary reason for leaving, some chip engineers said, was fear that China will seek to reclaim Taiwan by force.
Departing engineers also said they did not want to advance Chinese technology at the expense of Taiwan. Others worried they would run afoul of U.S. technology sanctions if they continued working in China.
A former engineer with Taiwan Semiconductor Manufacturing Co. (TSMC) who moved to China and recently returned home told the newspaper China is primarily interested in “poaching” Taiwan’s engineers to buttress its own position in the semiconductor industry.
While quoting engineers who have previously work for companies like TSMC in China, the report did not cite figures for the number of returning Taiwanese engineers. Taiwan has also been taking steps to curb the exodus of its semiconductor engineers to China, the
Times said.