WASHINGTON: White House, which is weighing new tariffs to punish China for its handling of the coronavirus pandemic, is working on an initiative in a bid to remove global industrial supply chains from the communist country.
US President Donald Trump has accelerated attacks on China and has pledged to bring manufacturing back from overseas.
The economic destruction due to the coronavirus pandemic is driving a government-wide push to move the country’s production and supply chain dependency away from China.
The US can approach other friendly countries instead, current and former senior U.S. administration officials said.
Keith Krach, Undersecretary for Economic Growth, Energy and the Environment at the State Department has told Reuters that the Trump administration has been working to reduce the reliance of US’s supply chains in China.
According to media reports, the U.S. Commerce Department, State is looking for ways to push companies to move manufacturing out of China.
Potential re-shoring subsidies and tax incentives are some of the measures being considered to spur changes.
President Trump has already warned of putting new tariffs on top of the up to 25% tax on $370 billion in Chinese goods.
The US government has been currently working with India, Australia, New Zealand, Japan, South Korea and Vietnam to take forward the global economy, according to Secretary of State Mike Pompeo.
Several companies in the US have invested in Chinese manufacturing.
(With inputs from Agencies)
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