The New Age of Supply Chain Warfare
China has weaponized global supply chains by manipulating critical raw materials and production dependencies, targeting the U.S. and allies like Japan, Australia, and South Korea, while citing directives from Xi Jinping to tighten foreign reliance on Chinese exports. The US-China Economic and Security Review Commission warns Beijing aims to dominate global value chains, creating vulnerabilities for adversaries through controlled exports like gallium, germanium, and antimony, essential for semiconductors and defense manufacturing.
China has systematically weaponized global supply chains to exert economic and military pressure on the U.S. and its allies, leveraging dominance over critical raw materials and production dependencies. According to the US-China Economic and Security Review Commission, Beijing now pursues explicit policies to establish uncontested control over global value chains, eliminating its own vulnerabilities while creating reliance on Chinese products. In April 2020, Chinese leader Xi Jinping directed efforts to 'tighten international production chains’ dependence on China,' forming countermeasures through artificial supply cutoffs to foreign entities. The strategy has already targeted nations like Japan, Australia, South Korea, and European countries, with China restricting exports of minerals vital for advanced electronics and defense. In late 2024, Beijing banned exports of gallium and germanium—essential for semiconductors—and antimony, a mineral with no viable substitute in military ammunition. These actions have disrupted industries while Chinese state subsidies and domestic market control further strengthen its dominance over printed circuit boards, foundational semiconductors, and active pharmaceutical ingredients. China’s control extends to lithium-ion batteries, critical for electric vehicles, drones, and advanced electronics, cornering production to limit adversary capabilities. The US-China Economic and Security Review Commission highlights China’s dual approach: withholding essential materials while flooding markets with excess production to undermine foreign competitors. This tactic has forced nations into dependence on Chinese supply chains, creating strategic vulnerabilities. The Strait of Hormuz crisis illustrates how adversaries like Iran and China exploit supply chain dependencies as geopolitical weapons, but China’s capabilities are far more advanced. By following Sun Tzu’s principle of breaking enemy resistance without direct conflict, Beijing has turned economic leverage into a tool of coercion, reshaping global trade dynamics to serve its strategic interests.
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