"From the DoD's perspective, they're highly dependent on [Asia] for fabrication and packaging [of chips]," Hudson Institute's Bryan Clark tells Breaking Defense. This has led to DoD calls to address a "fragile and threatened" chip supply chain.
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On April 21, 2021, Congress took action on two bills aimed at strengthening U.S. competitiveness vis-à-vis the People’s Republic of China (PRC or China). First, the Senate Foreign Relations Committee voted to advance the Strategic Competition Act of 2021. Second, Senators Chuck Schumer (D-NY) and Todd Young (R-IN), along with Representatives Ro Khanna (D-CA) and Mike Gallagher (R-WI), introduced the Endless Frontier Act. These bills are part of a broader wave of legislative action in Congress responding to Chinese policies that the U.S. government recognizes as posing threats to U.S. national and economic security.
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Capex has been falling amid the globalization of supply chains, but that could reverse, BofA says.
The bank says the shift in public policy is the biggest driver behind more business investment.
In that respect, BofA highlights potential winning industries and shares six ETFs to buy.
Cheap capital, rising consumer and investor demand, and a shift in government policy could set the stage for capital expenditures to grow at a pace not seen since Ronald Reagan was in office, according to Jared Woodard, an investment and exchange-traded-fund strategist at Bank of America.
President Biden Signs EO to Strengthen Critical Supply Chains | Wiley Rein LLP jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.