US-China Strategic Competition
Decoupling and Supply Chain Realignment
US-China strategic competition has moved beyond trade tariffs into a structural contest over technology, supply chains, and critical minerals. The US CHIPS Act (2022) allocated $52.7 billion for domestic semiconductor manufacturing, aiming to reverse decades of manufacturing migration to China. The US has expanded semiconductor export controls (October 2022 and subsequent rules) to restrict China's access to advanced chips, design software, and chip-making equipment. China retaliated by restricting exports of critical minerals — gallium, germanium (December 2024), rare earths, tungsten, indium, and bismuth — that are essential to semiconductor, defence, and clean energy manufacturing. The result is the emergence of parallel technological supply chains: a US-aligned sphere and a Chinese sphere, each attempting self-sufficiency.
- US CHIPS Act (2022): $52.7 billion for domestic semiconductor manufacturing
- US export controls: advanced AI chips (Nvidia H100, A100), chip-making equipment restricted to China
- China retaliatory export controls: gallium, germanium (December 2024); rare earths expanded in 2025
- US-China preliminary trade pause: October 2025 (one-year freeze on recent escalations)
- China produces ~60% of world's rare earths and dominates processing of most critical minerals
- Rubio's concern: 90% dependence on any one country for any critical input = strategic vulnerability
● Tracked since February 26, 2026 · last seen May 17, 2026 · updates as the daily brief publishes