Philips warns protectionism could derail critical medical supplies

Reuters ^ | March 24, 2020 | by Bart H. Meijer

[Oldeconomybuyer]

AMSTERDAM - Broad powers over U.S. factories brought in by President Donald Trump could fuel protectionism and jeopardize the supply of critical medical equipment to fight the coronavirus pandemic, Dutch health technology company Philips warned on Tuesday.

Trump said on Friday he had put into action the U.S. Defense Production Act, a law dating back to the Korean War of the 1950s that grants him sweeping authority to expedite and expand the supply of resources from U.S. factories.

That could include hospital ventilators which Philips makes in factories in California and Pennsylvania.

“We are worried”, Philips spokesman Steve Klink told Reuters on Tuesday, referring to the act.

Amsterdam-based Philips said on Sunday it would increase production of critical medical supplies for the diagnosis and care of patients with the new coronavirus disease COVID-19.

Most importantly, it said it would double its production of hospital ventilators in the coming weeks to help meet soaring global demand, and was aiming at a four-fold increase by the third quarter.

All these ventilators, however, are produced in its two U.S. factories, which makes Philips’ promise to ship them to the regions where they are most needed vulnerable to interventions by the U.S. government.

Such interventions could not only limit supply outside the United States, Klink said, but could also leave the country itself with less equipment than it would otherwise have - if retaliation in Europe or Asia squeezed the supply of critical parts.

[Oldeconomybuyer]

[Rashputin]

Seems to me,

"All these ventilators, however, are produced in its two U.S. factories, . . ."

". . . if retaliation in Europe or Asia squeezed the supply of critical parts."

So they're actually assembled in the US from parts outsourced to Europe and 'Asia', not "produced in it's two US factories"

is what you really intended to say, right Phillips?