Thursday, March 12, 2026

Global Supply Chains at Risk as US Warns and China Responds

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The US Congress released its annual report on Tuesday warning that China’s economic, technological, and security moves create growing supply chain risks. Lawmakers were urged to strengthen resilience and improve technological competitiveness.

The report came from the US-China Economic and Security Review Commission, which issues policy recommendations to Congress. Officials warned that without swift action, China could control vulnerable US supply chains and weaken military readiness in a potential conflict.

Chinese experts dismissed the report as biased and politically motivated. They said it misrepresents China’s economic activities as threats and unfairly portrays normal trade as dangerous. “Supply chain risks often originate from US policies, not China,” said Zhou Mi, senior researcher at the Chinese Academy of International Trade.

Analysts highlighted that Washington’s tariffs and restrictive measures have unsettled market expectations. They argue these actions disrupted supply-demand balances, while China continued to provide stable supply. China’s output of goods and services, experts said, has broadly benefited global markets, particularly developing economies.

The report claims China leveraged rare earth processing monopolies to pressure the US. While Beijing eased some restrictions, the commission warned of potential future enforcement. Chinese officials stressed that their exports follow international standards and aim to stabilize markets.

Song Zhongping, a trade analyst, emphasized that US-driven supply-chain disruptions have increased costs for consumers and pressured developing economies. Chinese firms, he added, act responsibly and coordinate with partners to reduce shocks.

Experts noted that China seeks cooperative solutions with the US, Europe, and other partners. They advocate building stable, complementary global supply chains while adhering to multilateral rules. China’s efforts contrast with America’s increasingly unilateral trade stance and moves toward de-globalization.

Overall, the report highlights significant supply chain risks, but Chinese experts insist that the narrative misplaces blame. They argue that global stability requires cooperation, not confrontation.

Supply chain risks, they say, should be addressed through dialogue and joint solutions rather than political tactics. Analysts predict continued friction if US policies remain protectionist, while China continues to push for collaboration.

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