Martial Arts, U.S. Department of Commerce Releases Analysis Report on 2,409 Items
"Supply Chain Core Item Dependence at 19.8%... Government Management Begins in Earnest"
[Asia Economy Reporter Moon Chaeseok] The United States' dependence on China for key supply chain items has increased over the past four years. Among 2,000 items, 46 are 100% dependent on China. Dependence on high value-added IT products such as laptops also reached 93%.
On the 27th, the Korea International Trade Association revealed this in its report titled "Current Status and Implications of the U.S. Key Supply Chain Items List." The report analyzed the list of 2,409 key supply chain items across four sectors?critical minerals, energy, information and communication technology (ICT), and public health?announced by the U.S. Department of Commerce in October last year.
The investigation showed that the U.S. dependence on imports from China decreased from 18.1% in 2019 to 16.9% from January to August last year. The problem is that dependence on key supply chain items increased from 19.5% to 19.8%. China remains the largest import country.
Among the 2,409 items, 156 had a dependence on imports from China of 70% or more. It was found that 46 items were 100% dependent.
By industry, the ICT sector, including telecommunications, networks, and computer equipment, showed the highest import dependence. In particular, laptop dependence reached 92.9%. Laptops are one of the top five key items by import value.
The report predicted that the U.S. government will actively manage the supply chain based on the key items list. The U.S. industry generally responded positively to government management. However, the wireless communication, battery, and pharmaceutical manufacturing and sales industries expressed concerns that excessive measures could have negative impacts.
Kim Nayul, a researcher at the Korea International Trade Association, said, "If the U.S. restructures the supply chain for key items, Korean companies will inevitably be affected. The public and private sectors must work together to strengthen research and development and participate in multilateral consultative bodies to establish economic security measures."
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