Reacting to news that Joe Biden has ordered a review of critical supply chains to reduce the US’s dependence on China, Jesse Chenard, CEO at MonetaGo, a New York-based fintech that uses blockchain to modernise supply chain networks, says:
“Trade routes are increasingly diversifying, with emergent markets across APAC leading the way in digitization. In fact, developing economies’ exports to other developing economies have exceeded exports to developed economies since 2011. In 2018, trade between developing countries was already worth $4.28 trillion.
Although China has historically had a stronghold over trade not just across APAC, but arguably internationally, such volumes flowing between lesser recognized trade routes demonstrate that this might be changing.
It’s time to look to these smaller trade routes for innovative trade developments – this includes trade finance.”
Joe Biden will order a review of critical supply chains to reduce the US’s dependence on China and other rivals for everything from rare earths and drug ingredients to semiconductors. The US president will sign an executive order on Wednesday requiring federal agencies to conduct 100-day reviews of supply chains for semiconductors, pharmaceuticals, electric vehicle batteries and critical minerals used in manufacturing products such as cars and weapons. “We’re going to get out of the business of reacting to supply chain crises as they arise and get into the business of getting ahead of future supply chain problems,” a senior US official said in a briefing on the pending action.