Washington concerned about Beijing’s dominance in supply chains

The United States fears that China could use its dominant position in supply chains as an additional means to increase its political and military influence, according to an intelligence report released Wednesday.

The “Annual Threat Assessment”, drawn up by the services of the national intelligence directorate, concludes that China already uses its dominance of supply chains to force foreign companies and certain States to transfer technologies and innovations.

The authorities of the Asian giant assured on Thursday that the report is a “slander” and “confuse black with white”.

The report states that “the Chinese state can take advantage of its dominant position in key supply chains to achieve its goals, though not without significant cost to itself”.

The threat would be greater in the event of a successful invasion of Taiwan – also a world leader in industrial and technological components, particularly semiconductors – according to the document.

The disruptions from the COVID-19 pandemic showed the world the importance of such supply chains in a globalized economy and illustrated how the closure of a single factory in China or elsewhere in the world can spell disruption. of major industrial operations on the other side of the planet.

The report points in particular to Chinese dominance in technology sectors such as semiconductors, certain minerals, batteries, solar panels and even pharmaceuticals.

He cites an April 2020 speech by President Xi Jinping in which he asserted that China seeks to increase its control over key supply chains, in order “to be able to use this reliance to threaten and isolate foreign countries during a crisis.”

“China’s dominance of these markets could pose significant risks to the US and Western manufacturing and consumer sectors, if the Chinese state is able to cleverly leverage its dominance for political and economic gains.”, says the report.

The document also points to military challenges, such as the capabilities of the Chinese military in terms of conventional missiles that now “probably” pose a serious threat to US bases in East Asia.

Also, in the space China is probably listed by 2030.”among the best in the world” in all sectors, except for some specific technologies.

By then, the commercial arm of the Chinese space industry will be a major competitor to its Western rivals, the report concludes.

Chinese Foreign Ministry spokeswoman Mao Ning said Beijing has no intention of challenging, threatening or undermining the United States or other countries.

“China’s development is to help the people of China lead happy lives.Mao said.

“The United States, as the only military superpower and as a country armed to the teeth, should reflect on what it can and should do before criticizing other countries.

Source: AFP