‘Game Recognises Game’: China Copies US Tactics; Puts Tech Supply Chain in Chokehold

In a strategic shift echoing US policies, China is leveraging its dominance in rare earth minerals and semiconductors to control global tech supply chains—turning Washington’s own playbook against it. Analysts warn this escalation could reshape industries from EVs to AI.

The US Blueprint: Sanctions & Supply Chain Dominance

For years, the US has used tech export bans and subsidies to stifle China’s rise. Key moves include:
– Huawei’s blacklisting (2019)
– CHIPS Act (2022), diverting semiconductor investments from China
– ASML EUV lithography bans, blocking China’s access to cutting-edge chipmaking tools

China Strikes Back: Rare Earths & Critical Minerals

Beijing now wields its own supply chain weapons:
– 90% global rare earth production control (essential for EVs, defense tech)
– Export curbs on gallium, germanium, and graphite (vital for chips & batteries)
– Silicon wafer monopoly (60% of global supply)

“China’s proving it can choke Western tech just as the US choked its semiconductor ambitions,” says Dr. Priya Menon, geopolitical analyst.

Semiconductor Wars: Who Holds the Power?

The standoff exposes mutual dependencies:
– US leads in chip design (Intel, Nvidia) & equipment (ASML, Lam Research).
– China dominates raw materials (rare earths, wafers) & intermediate goods.

Any further restrictions could delay AI development, smartphone production, and green energy projects worldwide.

Global Fallout: Can Companies Adapt?

• Apple, Tesla, Samsung are diversifying supply chains—but China’s infrastructure is unmatched.
• India’s PLI scheme aims to attract chipmakers, yet lacks rare earth refining capacity.
• EU accelerates self-sufficiency with its Critical Raw Materials Act.

“Decoupling is a myth without massive mining investments,” warns tech expert Rohan Desai.

What Comes Next?

Two possible outcomes loom:
1. Negotiated truce (unlikely amid rising tensions)
2. Permanent tech bifurcation, forcing nations to pick sides.

Businesses must prepare for prolonged instability as the US-China tech cold war intensifies.