Senior US Department of Defense official Deborah Rosenblum testified before the US government’s US-China Economic and Security Review Committee on June 9. uscc

Sheet South China Morning Post On June 10, it was reported that the US Department of Defense intends to increase the use of Defense Production Act (DPA) to cope with the shortage of key materials and labor in the hardware sector, avoiding supply chain dependence from China.

Speaking before the US-China Economic and Security Review Committee, Ms. Deborah Rosenblum, Acting Assistant Secretary of Defense on policy industrial facilities, warning that The Pentagon too much reliance on China for minerals such as rare earths and parts microelectronics.

The official stated that 88% of the production of microelectronic parts and 98% of the assembly, packaging and testing of these products are mainly conducted in Taiwan, Korea and China, in which China is actively increasing its market share.

Besides, China also dominates the production of advanced batteries globally, which contains 94% lithium hydroxide, 76% electrolyte and 70% lithium carbonate.

Rosenblum said the US Department of Defense will use the DPA funds for programs to promote the domestic industrial workforce, with an emphasis on shipbuilding.

Investments aimed at modernizing the U.S. military while reducing the risk of supply chain disruptions will only be effective if U.S. manufacturing forces are capable of making them, the official said.

The global supply chain crisis affected many cities in the US, leading to shortages of many items, while demand increased. Rosenblum said the US will have to make up the 2.1 million worker shortfall by 2030.

She called for strengthening partnerships based on education with schools, technical colleges and communities.

In addition, DPA’s funds will be used over the next 2-3 years to promote domestic production of minerals, semiconductors and other microelectronic parts, as well as technology energy storage, ammunition and other critical products in the supply chain, according to Ms. Rosenblum.