Daijiworld Media Network - Washington
Washington, Jun 26: The Trump administration has underscored the need to reduce excessive dependence on concentrated global supply chains, saying the vulnerabilities extend beyond China and that countries should work together to eliminate "single points of failure" in critical industries.
Speaking on Friday, US Under Secretary of State for Economic Affairs Jacob Helberg said resilient and diversified supply chains are essential for ensuring long-term global economic stability.
Responding to a question on whether India and the United States could deepen cooperation to address supply chain risks arising from China's dominance, Helberg said the challenge was broader than any single country.
"We think about it as a problem of over-concentration in our supply chains, and there are over-concentration issues that are not unique to China," he said.
Helberg explained that global manufacturing and logistics networks have become heavily dependent on a limited number of production centres, making international trade vulnerable to disruptions.
"Fundamentally, the issue is the supply chain right now is reliant on single points of failure, whether they be logistical or industrial," he said.
He added that reducing these vulnerabilities remains a key priority for Washington.
"We are totally on the same page about the fact that these single points of failure need to be de-risked for the health of the global economy," Helberg said.
His remarks followed his earlier description of India as a potential "comprehensive partner" under the US-led Pax Silica initiative, highlighting the expanding cooperation between New Delhi and Washington in technology, manufacturing and economic security.
According to Helberg, the initiative presents significant opportunities for the two countries to strengthen collaboration in strategic sectors such as semiconductor manufacturing and the processing of critical minerals.
He also observed that India and the United States share similar concerns regarding the fragility of existing global supply chains.
"Our countries fundamentally share the exact same concerns about the fragility of the status quo in our supply chains," he said.
India has increasingly emerged as a key strategic partner for the United States in efforts to build more resilient supply chains for semiconductors, critical minerals and other advanced technology sectors.
In recent years, both countries have expanded cooperation through a series of technology and economic initiatives aimed at boosting manufacturing capabilities, enhancing supply chain resilience and reducing dependence on concentrated production hubs.