Can America SURVIVE China’s Supply Grip?

America’s increasing dependence on Chinese rare earth minerals and pharmaceuticals threatens national security while Beijing tightens its grip on these critical resources.

At a Glance

  • The US imports nearly 75% of its lithium-ion batteries from China, creating serious national security vulnerabilities
  • China dominates the global battery supply chain from mineral extraction to finished production
  • The COVID-19 pandemic exposed America’s dangerous reliance on Chinese pharmaceuticals and medical supplies
  • The US and Ukraine have signed a deal to collaborate on rare earth minerals to reduce Chinese dependence
  • Experts recommend updating trade codes, enhancing government data sharing, and boosting domestic production

China’s Growing Control Over Critical Resources

The United States faces an escalating national security threat due to its heavy reliance on Chinese exports of rare earth minerals and pharmaceuticals. These critical resources form the backbone of America’s defense, technology, and healthcare sectors. China’s dominance in these supply chains has created dangerous vulnerabilities that could be exploited during times of conflict or diplomatic tension. With Beijing controlling significant portions of the global battery supply chain from raw material extraction to finished product manufacturing, America’s military readiness and economic independence hang in an increasingly precarious balance. 

Recent trade data reveals the shocking extent of this dependency. According to a comprehensive report from the Council on Strategic Risks, the United States imports nearly three-quarters of its lithium-ion batteries directly from China. These batteries are essential components for defense systems, communications equipment, and the broader transition to renewable energy. The dependence is particularly acute for graphite, a critical battery component for which China remains the dominant global supplier. This reliance creates a potential chokepoint that could cripple American manufacturing and military operations during a crisis. 

The Pharmaceutical Vulnerability

The COVID-19 pandemic brutally exposed America’s dependence on China for pharmaceuticals and medical supplies. When global supply chains buckled under pressure, American healthcare workers faced critical shortages of protective equipment and essential medications. The flood of inexpensive Chinese masks and medical supplies in 2025 has severely disrupted domestic manufacturing, leaving the nation even more vulnerable to future health crises. According to experts, this dependency represents a significant blind spot in America’s national security planning that must be addressed immediately. 

“Few domestic industries have been as devastated by the flood of cheap Chinese imports as manufacturers of face masks, exam gloves and other disposable medical gear that protects healthcare workers from infectious pathogens,” reported The New York Times. 

President Donald Trump has been vocal about the risks of Chinese control over these vital resources. In a recent statement, he accused China of violating agreements regarding the free flow of rare earth minerals to the United States, writing “TOTALLY VIOLATED ITS AGREEMENT WITH US,” and adding “So much for being Mr. NICE GUY!” This political tension highlights how resource dependencies have become central to geopolitical maneuvering between the world’s two largest economies, with serious implications for America’s strategic position. 

Strategic Solutions and Policy Reforms

To counter these threats, policymakers are pursuing several initiatives to reduce America’s dependence on Chinese resources. One promising development is a recent agreement between the United States and Ukraine to collaborate on rare earth mineral development. 

This partnership aims to create an alternative supply chain outside of Chinese control, leveraging Ukraine’s natural resources and American technological expertise. Such international partnerships represent an important step toward diversifying America’s resource suppliers and reducing strategic vulnerabilities. 

Domestic initiatives are equally crucial for reducing Chinese dependence. Security experts recommend updating America’s outdated Harmonized Tariff Schedule codes, enhancing data sharing between government agencies, and creating targeted incentives for domestic manufacturing. These reforms would provide policymakers with better information about supply chain vulnerabilities while creating economic conditions favorable to American production. The path forward requires a combination of lower taxes, regulatory streamlining, and strategic investments in new technology to rebuild domestic manufacturing capabilities in these critical sectors. 

The Path Forward

While completely excluding Chinese companies from U.S. markets may not be feasible due to their entrenched positions and technical expertise, a balanced approach focused on diversification and domestic capability-building offers the most promising strategy. Supply chain experts recommend “ally-shoring” – developing partnerships with friendly nations – alongside domestic production initiatives. This dual approach would reduce vulnerabilities while acknowledging the complex realities of global trade and manufacturing. The economic and security implications of continued Chinese dependence are simply too great to ignore. 

America’s future security depends on reducing its reliance on Chinese-controlled resources. Through strategic international partnerships, domestic manufacturing incentives, and improved data collection, the United States can rebuild critical supply chains and protect its economic and military interests. The stakes could not be higher – continued dependence creates vulnerabilities that could compromise America’s ability to defend itself and maintain its technological edge in an increasingly competitive global environment. Addressing this challenge must become a national priority that transcends partisan politics.

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