
The U.S. faces a national security crisis as dependence on Chinese minerals and pharmaceuticals threatens to undermine its industrial resilience and global standing.
At a Glance
- U.S. dependency on Chinese minerals and drugs is a growing national security risk.
- China dominates supply chains for lithium, graphite, and rare earths.
- COVID-19 revealed critical vulnerabilities in American supply chains.
- The U.S. is boosting domestic production and pursuing foreign partnerships to diversify.
- Lawmakers urge comprehensive reforms to rebuild self-reliance.
The Strategic Weakness Within
America’s economic engine is tethered to its chief global rival. Roughly three-quarters of U.S. lithium-ion battery imports originate from China, according to a Council on Strategic Risks report. Critical to defense, electronics, and energy infrastructure, these materials represent more than trade goods — they’re strategic lifelines.
U.S. reliance is especially stark with graphite, a material essential to missile systems and electric vehicles. Officials warn that any disruption by Beijing, whether deliberate or incidental, could have catastrophic economic consequences. Supply disruptions would ripple across sectors — a lesson made painfully clear during the COVID-19 pandemic.
Watch a report: U.S. faces risks from China-dependent supply chains.
COVID’s Wake-Up Call Ignored
The pandemic exposed just how fragile U.S. dependencies are. Pharmaceutical ingredients, face masks, and other protective gear vanished from shelves when Chinese supply lines were cut or rerouted. A New York Times excerpt cited the devastation of U.S. manufacturers by cheap Chinese imports, while national security officials flagged the systemic dangers of relying on a geopolitical adversary for lifesaving goods.
Despite heightened awareness, policymakers have struggled to translate concern into action. A recent trade partnership with Ukraine aims to tap alternative mineral sources. Yet the U.S. still lacks the infrastructure, investment, and regulatory agility to swiftly reduce its reliance on China.
Redesigning American Resilience
To change course, Washington must deploy a full-spectrum strategy: incentivize domestic mining and processing through tax reforms, streamline permitting, and invest in next-generation material science. Lawmakers are also urging an overhaul of trade data systems to better track dependencies and risk concentrations.
President Trump has described China’s behavior as a “TOTAL VIOLATION” of past trade commitments, reinforcing the need to recalibrate strategic sourcing. But exclusion isn’t simple: decoupling from Chinese firms entirely could upend global markets.
Instead, officials advocate for “ally-shoring” — rebuilding supply chains among trusted partners. While such measures won’t produce overnight independence, they mark a critical step toward securing America’s economic sovereignty and reducing the nation’s most dangerous vulnerabilities.