Global Collaboration Important for Long-term Resolution on Supply Chain Concerns

WASHINGTON, January 13, 2022 – American and European leaders discussed Wednesday how they were working to build closer partnerships with global players to reduce the impact of supply chain issues that have constricted supply of consumer and business items and have contributed to inflation scares.

A mix of federal aid, low interest rates and coronavirus-induced supply chain problems have led to a reported seven percent increase in the price of goods in December compared to the previous December.

Jonathan Spalter, CEO of broadband association USTelecom, the White House National Security Council’s Director for Digital Technology Policy and International Economics Ruth Berry, and the European Commission’s Thibaut Kleiner noted Wednesday that they were working together on a long-term resolution to supply chain concerns, including increasing funding and coordination between their governments and coordinating with non-government stakeholders to exchange ideas.

Berry, Spalter, and Kleiner agreed that there is a major issue with the supply chain with respect to things including chips, fiber optic cable and circuit boards. According to Berry, this issue is key to the Biden administration and they are making investments, expanding domestic production, and partnering with other entities to resolve this issue.

Berry focused on the idea that the views of stakeholders should be prioritized. She said there is value in the exchange of ideas and in considering the views of people across the industry, with Spalter and Kleiner agreeing.

Kleiner said the European Commission is speaking with America, Japan, Singapore, and South Korea to find like-minded ways to address this issue. One of the contributing problems is that chips and other materials are designed in the European Union and in the United States, but are produced in Asia, making the industry dependent on Asian production, said Kleiner.