The US says its dependency on China for its technology supply chain is posing challenges to global security. Amid the growing rift with China on the global stage, the US is turning to India as an alternative for its technology supply chains.
According to today’s breaking news, officials from the Biden Administration met with a delegation of officials from India and industry executives in the United States this week. With this initiative, the US is seeking investments and technology development in India as part of its push to find an alternative supply chain away from China.
In a briefing to reporters on Tuesday, Jake Sullivan, the national security advisor at the White House, said the nation is facing challenges with Beijing expanding its global influence. It has led to a change of thinking in Delhi’s capital as well as in other capitals worldwide. The present discussions in the US are against the backdrop of such an element.
Imposes restrictions on the export of advanced chip manufacturing equipment
In its recent meetings with the Netherlands and Japan, the US administration also discussed imposing restrictions on the export of equipment for advanced chip manufacturing to China. The joint efforts are to slow down military development in China by cutting access to sophisticated technologies
India emerges as a top destination for chip manufacturing
According to the officials in the US, these export restrictions will create opportunities for nations like India. Though India is not a top destination for semiconductor manufacturing in the world, New Delhi is striving to establish itself as a leader in chip production. Therefore, industries searching for diversifying their supply chains are leaning toward India. With relatively cheap labor, resources, and talented people, India is appealing as a great destination for technology supply chains.
A task force established by the semiconductor industry association held discussions on Tuesday in the US in a bid to expedite investments and cooperation with the semiconductor association and electronics industry in India to pursue its goals. The meeting was attended by executives from Micron, Lockheed Martin, the Biden administration, and other industries.
Ajit Doval, the national security advisor of India, led the delegation of New Delhi this week in a meeting attended by Gina Raimondo, the Commerce Secretary, Mr. Sullivan, and other officials. In the latest BNN world news, these meetings underpin the efforts of the US to tackle the security challenges posed by a rising China.
The administration in the US is also giving priority to the relationship with the Quad, which is an alliance between Japan, Australia, the US, and India to counter Beijing. According to a senior administration official, US President Joe Biden believes that there can be no long-term and successful effort to address global challenges without India’s participation.
Several challenges have strained relations between New Delhi and the United States in recent months. India is continuing to purchase oil from Russia and also maintaining a neutral stand in the war between Ukraine and Russia. It defied the direction of the US to refrain from buying oil from Russia. Instead, India has increased its purchases of oil from Russia rather than the US. However, the US administration said it understands the burgeoning demand for oil in the Indian domestic market and is buying the oil at the price cap set by its allies in 2022.
