Opinion | How US’ anti-China supply chain strategy risks hurting American consumers

Before the Asia-Pacific Economic Cooperation (Apec) summit in San Francisco earlier this month, the meeting between US President Joe Biden and President Xi Jinping in Woodside, California, provided a glimmer of hope that both countries could manage their relationships effectively.

Xi hinted at the possibility of sending new pandas to the United States after three beloved pandas from the Smithsonian National Zoo returned to China. He also said that “Planet Earth is big enough for the two countries to succeed.” Meanwhile, Biden emphasised that the world expects both countries to manage competition responsibly to prevent it from escalating into conflict.

Their amicable discussions resulted in several significant positive steps. The revival of communication channels between the Chinese and US militaries – which were suspended after US House speaker Nancy Pelosi’s trip to Taiwan last August – brought a sigh of relief from many. It was also comforting to see China take steps to help curb the fentanyl crisis in the US, agreeing to curb the shipment of materials used to manufacture these drugs in Latin America.

There was a sense of disappointment among some US business leaders that Xi made little mention of trade and investment during his speech at a dinner in San Francisco. However, this omission was understandable given the context of US and other firms shifting production from China to countries such as India and Vietnam.

In the wake of the prolonged product shortages during the Covid-19 pandemic, both the US government and American firms have shifted their focus towards developing resilient supply chains to ensure a stable supply of critical products.