China’s strategic control over critical supply chains poses a significant threat to U.S. national security, particularly in key sectors such as artificial intelligence, quantum computing, and biotechnology. As the U.S. adopts tomorrow’s technologies, its reliance on Chinese supply chains could expose it to growing leverage and risk. For instance, American leadership in AI depends on access to specialized chemicals, printed circuit boards, and networking equipment from China, while China controls essential materials for quantum computing, including cooling equipment and precision lasers.
Moreover, China is the sole supplier of at least one critical ingredient for nearly 2,000 U.S.-approved medicines, including widely prescribed antibiotics like amoxicillin. This dependence on China raises concerns about supply chain vulnerabilities, especially if tensions escalate. The article emphasizes the need for proactive measures to de-risk critical supply chains, highlighting the U.S. private sector’s strengths in research and development and the depth of its capital markets.
Recommendations include incentivizing domestic production of critical inputs for semiconductors and data centers, as well as fostering private investment in quantum computing and biotechnology. The Department of Defense is urged to use its procurement power to drive innovation in quantum computing, while biomanufacturing hubs should ease regulations to aid smaller firms. The piece also underscores the importance of strengthening alliances with Europe, Japan, and South Korea to diversify sources of critical minerals and drug ingredients.
Ultimately, the article calls for the establishment of an Economic Security Center to enhance government coordination, technical expertise, and private sector partnerships. With bipartisan support for strengthening supply chains, the U.S. must act swiftly to secure its economic and technological future in the face of global competition.