The Importance of the US ‘Supply Chain Establishment’ and the G-7 Meeting With Korea, Japan and Taiwan

The Biden administration’s plan for the global economy, technology and an alliance of values has been announced in detail. The White House’s report on the establishment of supply chains in four major areas, including semiconductors, batteries, essential minerals such as rare earths and pharmaceuticals, makes it clear that the U.S. will create a new global supply system through active cooperation with Korea, Japan and Taiwan.

As the title “Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-Based Growth” reveals, the plan is to break away from dependence on China and lead the growth of the U.S. and this alliance. Given that the majority and the opposition parties in the U.S. have a firm consensus on preventing totalitarian China from leading the world, it is a blueprint for a new order that will continue for decades to come.

In particular, the U.S. government’s clear intention can be seen in the establishment of a trade strike force led by the U.S. trade representative and the operation of a pan-government task force to respond to short-term supply chain disruptions caused by China’s backlash. President Joe Biden said he would also host an international conference by inviting allies and private companies.

In the 250-page report, Korea was listed 74 times, Japan and Taiwan 80 times each, and even the names of companies such as Samsung Group, LG Electronics, Inc. and SK Group appear. Of course, China, which is the target of these checks, has been mentioned 458 times. In addition, the strategy for fostering the large-capacity battery industry has been clearly established. It was also announced that by February of next year, a plan to set up supply chains in six major areas, such as defense, energy and agriculture, would be developed.

The U.S. initiative will be discussed at the Group of Seven major industrial nations summit to be held in Cornwall, U.K. from June 11 to June 13. Each country has different positions on detailed issues, but in the general discussion, the G-7 countries have already reached a consensus through ministerial meetings, etc. Biden declared in a Washington Post article on the June 6, “The world’s major democracies will be offering a high-standard alternative to China.” This is why this conference, which invited Korea, India and Australia too, is also recognized as the starting point for the D-10 Strategy Forum countries.*

The plan and the role of President Moon Jae-in, who will be attending this conference, is very important. There is no need to stay away from China, but we need to break free from the delusion of the Chinese dream and take the lead in solidarity for liberal democracy. Otherwise, the national interest and future of the Republic of Korea will be seriously undermined.

*Editor’s note: D-10 refers to a 2008 initiative by the State Department for policy planning, picked up by the Atlantic Council, which launched an initiative in 2014 to maintain a “rules-based democratic order” under the leadership of 10 leading democracies.