U.S. Commission Warns of Rising Supply Chain Risks Tied to China’s Industrial Strategy
The U.S.-China Economic and Security Review Commission, a bipartisan congressional advisory panel tasked with monitoring the national security implications of U.S.-China trade, on Thursday, June 5, warned that China's expanding control over global manufacturing and key supply chains could pose significant risks to the U.S. economy and national security.
In a public hearing titled “Dominance by Design: China Shock 2.0 and the Supply Chain Chokepoints Eroding U.S. Security,” members of the commission and a panel of bipartisan experts detailed concerns over China’s industrial overcapacity, strategic subsidies, and growing market share in critical sectors ranging from semiconductors to pharmaceuticals.
“The Chinese government is not just pursuing manufacturing dominance by accident—it’s doing it by design,” said Commissioner Livia Shmavonian in her opening statement. “China’s trade surplus has doubled in five years and is now being used to erode the industrial competitiveness of the United States and its allies.”
Witnesses pointed to China’s ability to influence global supply chains through state-directed policies and control of key raw materials and components. They noted that disruptions—whether caused by geopolitical tensions, export controls, or deliberate economic coercion—could leave U.S. industries vulnerable to shortages or price shocks.
The hearing included testimony from economists, national security analysts, and former trade officials, who urged lawmakers to act preemptively to reduce overreliance on Chinese suppliers and to strengthen domestic manufacturing capacity. Several panelists called for modernizing U.S. trade laws and expanding partnerships with allied nations to mitigate risks.
In particular, experts cited concerns over sectors like medical supplies, printed circuit boards, and critical minerals, where U.S. firms have limited alternatives to Chinese sources.
Commissioners also raised the prospect of a renewed “China shock”—a reference to the disruptive wave of imports that followed China’s accession to the World Trade Organization in the early 2000s—as Beijing ramps up production and seeks to absorb global market share.
The hearing comes amid rising bipartisan scrutiny of U.S.-China economic relations, with Congress and the Biden administration considering measures to counter China’s economic influence and protect U.S. supply chains.
A full recording of the hearing and written testimony from all witnesses is available at www.uscc.gov.
NMMA continues to advocate for a strategic, sector-specific approach to tariffs that strengthens our global leadership while upholding the tradition of excellence in American manufacturing that defines our $230 billion industry and the 812,000 jobs we support. NMMA has engaged with USTR, Congress and the White House on behalf of members ensuring their voices are heard. For questions or feedback, contact Clay Crabtree, Senior Director of Public Policy, at [email protected].
In a public hearing titled “Dominance by Design: China Shock 2.0 and the Supply Chain Chokepoints Eroding U.S. Security,” members of the commission and a panel of bipartisan experts detailed concerns over China’s industrial overcapacity, strategic subsidies, and growing market share in critical sectors ranging from semiconductors to pharmaceuticals.
“The Chinese government is not just pursuing manufacturing dominance by accident—it’s doing it by design,” said Commissioner Livia Shmavonian in her opening statement. “China’s trade surplus has doubled in five years and is now being used to erode the industrial competitiveness of the United States and its allies.”
Witnesses pointed to China’s ability to influence global supply chains through state-directed policies and control of key raw materials and components. They noted that disruptions—whether caused by geopolitical tensions, export controls, or deliberate economic coercion—could leave U.S. industries vulnerable to shortages or price shocks.
The hearing included testimony from economists, national security analysts, and former trade officials, who urged lawmakers to act preemptively to reduce overreliance on Chinese suppliers and to strengthen domestic manufacturing capacity. Several panelists called for modernizing U.S. trade laws and expanding partnerships with allied nations to mitigate risks.
In particular, experts cited concerns over sectors like medical supplies, printed circuit boards, and critical minerals, where U.S. firms have limited alternatives to Chinese sources.
Commissioners also raised the prospect of a renewed “China shock”—a reference to the disruptive wave of imports that followed China’s accession to the World Trade Organization in the early 2000s—as Beijing ramps up production and seeks to absorb global market share.
The hearing comes amid rising bipartisan scrutiny of U.S.-China economic relations, with Congress and the Biden administration considering measures to counter China’s economic influence and protect U.S. supply chains.
A full recording of the hearing and written testimony from all witnesses is available at www.uscc.gov.
NMMA continues to advocate for a strategic, sector-specific approach to tariffs that strengthens our global leadership while upholding the tradition of excellence in American manufacturing that defines our $230 billion industry and the 812,000 jobs we support. NMMA has engaged with USTR, Congress and the White House on behalf of members ensuring their voices are heard. For questions or feedback, contact Clay Crabtree, Senior Director of Public Policy, at [email protected].