China’s mastery of critical supply chains presents a substantial risk to U.S. national security in advanced technology fields, notably artificial intelligence, quantum computing, and biotechnology. The piece highlights Beijing’s capacity to use economic leverage, as demonstrated during the recent rare-earth standoff that former President Donald Trump had to manage during his latest visit to Asia. This issue is not limited to rare earths, as the growing dependency on Chinese supply chains could jeopardize U.S. technological leadership in the future.
Three key technologies—artificial intelligence, quantum computing, and biotechnology—are identified as essential to America’s national security. The article explains how China’s control over resources like cooling equipment, precision lasers, and essential minerals could significantly impact U.S. advancements in these areas. American leadership in AI is heavily dependent on access to specialized chemicals, printed circuit boards, and networking equipment from China. Similarly, quantum computing relies on materials like precision lasers and cooling systems, which are largely controlled by China.
More alarmingly, China is the sole provider of at least one essential ingredient for over a third of nearly 2,000 U.S.-approved medicines, including amoxicillin, a widely used antibiotic. This dependency highlights the risks posed by China’s control over critical supply chains. The U.S. still holds significant advantages, including leading spending on research and development and access to the world’s deepest and most liquid capital markets. The availability of a skilled American workforce, from machinists to STEM researchers, also positions the U.S. well to reclaim supply chain control.
However, the report suggests that creative incentives are necessary to fully tap into these strengths. The U.S. government should take steps to incentivize domestic production of crucial elements for semiconductors and data centers, as well as materials for quantum computing and biotechnology. Additionally, mobilizing private investment in quantum computing and biotechnology through government procurement initiatives and regulatory adjustments is recommended. The article also mentions the importance of strengthening alliances with the European Union, Japan, and South Korea to support U.S. manufacturing and supply chain resilience.
The need for a unified economic security strategy is emphasized, advocating for the creation of an Economic Security Center to enhance government coordination and private sector engagement. The piece underscores the bipartisan backing for strengthening supply chains and the urgent need to continue this momentum to protect U.S. economic and technological leadership in the evolving landscape of global competition.