The U.S. military, renowned for its technological superiority and operational capability, faces an ironic and alarming vulnerability—its growing dependence on Chinese-manufactured components and financial entanglements. From microchips used in aircraft carriers to critical alloys in the F-35 fighter jets, reliance on Chinese materials and capital flows to Chinese companies pose strategic risks that could undermine U.S. national security in unforeseen ways.

 

The Extent of Dependence

Recent revelations have spotlighted the depth of U.S. reliance on Chinese supply chains. In September 2022, the Pentagon temporarily halted deliveries of F-35 fighter jets after discovering Chinese alloys in their turbomachine pumps. These pumps, critical to the jets' electrical and thermal systems, underscored vulnerabilities in supply chain transparency and compliance with U.S. defense acquisition regulations.

 

Adding to the complexity is the issue of subcontractors using Chinese suppliers without the knowledge of original equipment manufacturers (OEMs). This practice introduces hidden vulnerabilities, as military OEMs may inadvertently integrate compromised components into critical systems. Such unapproved materials or parts could become vectors for espionage, operational failures, or security breaches.

 

Financial Risks Amplify Strategic Concerns

Beyond components, U.S. financial institutions have been implicated in aiding China’s military modernization and surveillance state. A 2024 report by the House Select Committee on the Chinese Communist Party revealed that American financial institutions funneled $6.5 billion into 63 PRC companies blacklisted or red-flagged by the U.S. government. These entities are linked to advancing China’s military capabilities and supporting human rights abuses, including the surveillance state responsible for the repression of Uyghurs in Xinjiang.

 

This financial entanglement not only accelerates China's military advancements but also implicates U.S. investors in activities that contravene American values and strategic interests. The flow of capital into such companies highlights the need for stringent investment screening and a reevaluation of financial ties that inadvertently bolster an adversary.

 

Mixed Results in Reducing Dependence

Efforts to mitigate these risks remain a work in progress. The U.S. defense supply chain is deeply intertwined with global manufacturing, making it challenging to transition to domestically sourced materials or diversify supply sources. Policies like the Defense Production Act and the CHIPS and Science Act aim to bolster domestic manufacturing, but their impact will take time to materialize.

 

Similarly, oversight mechanisms for financial investments need to be strengthened to prevent American capital from supporting adversarial entities. The challenges lie not only in building alternative supply chains but also in ensuring that all aspects of national security—including economic and financial dimensions—are aligned against strategic vulnerabilities.

 

Conclusion: A Strategic Imperative

The U.S. military’s dependence on Chinese components and the financial sector’s investments in Chinese military-linked companies present multifaceted risks. In the event of a military confrontation or political decoupling between the two nations, the U.S. could face severe operational and supply chain disruptions. Beyond immediate risks, this dependence underscores the broader dangers of relying on a strategic competitor for essential materials and financial relationships.

 

To safeguard national security, the U.S. must accelerate efforts to build resilient, independent supply chains while fostering innovation in domestic manufacturing. Diversifying suppliers, stockpiling critical materials, and investing in research and development are crucial steps. Ensuring greater oversight of subcontractors and implementing stringent investment screening mechanisms can prevent adversarial advancements. Only by addressing these vulnerabilities proactively can the U.S. ensure its military remains not just formidable but also secure in the face of future challenges.