The vulnerability of the US defense industrial base to Chinese influence and control has emerged as a critical national security concern. A recent report by the US Government Accountability Office (GAO) has highlighted alarming risks posed by China's deep entanglement in the supply chains of key US military systems and equipment. The report warns that the heavy reliance on Chinese materials and components not only jeopardizes the integrity of the US defense apparatus but opens pathways for espionage, sabotage, and strategic manipulation that could severely weaken America’s military readiness.
The Scope of the Vulnerability
The US Department of Defense (DoD) relies on a vast global network of more than 200,000 suppliers to provide components and raw materials for its weapon systems and military hardware. Among these, China plays an outsized role, manufacturing a significant share of critical materials such as rare earth minerals vital for electronics, batteries, and precision components.
Despite the crucial importance of supply chain security, the GAO report finds that federal contractors are not contractually obliged to disclose the exact origin of all their manufacturing parts to the DoD. As a result, DoD's tracking mechanisms provide "limited information about the countries of origin," leaving substantial blind spots that adversarial nations can exploit. This opaque environment allows many components used in US defense systems to come from China or other countries antagonistic to US interests.
In fiscal year 2023, the DoD identified shortages in over 99 critical materials, none produced domestically, highlighting the near-total dependence on foreign supplies. Of particular concern are minerals such as gallium and germanium, critical for military-grade electronics, which China has restricted export controls on in recent years. This creates risk scenarios where Beijing could deliberately choke off supplies during conflicts or crises, effectively paralyzing key segments of the US defense industrial base.
Espionage and Sabotage Risks
Beyond economic dependency, the GAO report underscores the grave threat of espionage embedded within supply chains. Chinese contractors and subcontractors have been documented to access sensitive US defense technology illicitly. One telling example is Su Bin, a Chinese national who owned a small Air Force contracting company and facilitated the theft of more than 630,000 classified Boeing files linked to the C-17 military transport plane. This breach demonstrated how even smaller subcontractors in the supply chain provide vectors for intelligence gathering by adversaries.
Moreover, there is credible evidence that Chinese factories have installed unauthorized microchips in motherboards supplied to US defense contractors. These hardware implants enabled cyberattack capabilities against US government agencies including the Department of Defense, CIA, and NASA. Such backdoors in defense hardware represent a direct threat to national security, with potential to spy on or sabotage military operations in real-time.
The Israeli precedent of supply-chain sabotage—where explosive devices were covertly inserted into enemy pagers—raises chilling parallels to potential Chinese covert sabotage of US military equipment. The report warns it would be "naïve to ignore the potential of a similar Chinese day-zero attack on US warfighters."
China's Dominance in Critical Minerals and Supply Chains
An in-depth analysis from industry experts reveals China's dominant control over the global production and processing of many minerals essential to US military technology. Over 78% of US military weapon systems rely on critical minerals and components linked to Chinese supply chains. China produces or processes over 80% of global graphite, 62% of fluorspar, and the majority of magnesium—all used extensively in aircraft, missiles, batteries, and electronics.
Even when minerals are mined outside China, much of the processing occurs within Chinese facilities, enabling Beijing's leverage to impose export restrictions or manipulate supply availability. China’s vast network of state-backed mining and processing operations, including through foreign subsidiaries, extends its influence across six tiers of supply chains, affecting tens of thousands of defense industry suppliers.
Experts recommend urgent actions such as expanding domestic refining capabilities, creating national stockpiles of critical minerals, and establishing "mineral companionality" strategies to extract critical elements within the US. Without such interventions, analysts warn that America's ability to manufacture advanced military technologies—from rockets to drones—faces unprecedented risk.
Cybersecurity Threats and Supply Chain Attacks
China-aligned cyber espionage groups have escalated attacks on the semiconductor and defense supply chains, particularly targeting Taiwanese manufacturing hubs crucial for global chip production. Recent campaigns by groups such as TA415 involve sophisticated spear-phishing attacks against US government, think tanks, and academic institutions involved in US-China economic and defense policy.
Such cyber operations are designed to gather intelligence, disrupt production, or insert vulnerabilities that can be exploited later. The increasing sophistication and frequency of these cyberattacks highlight the evolving nature of supply chain warfare beyond physical components alone.
As vulnerable hardware moves through complex global networks, combining physical and cyber threats, the overall risk profile for the US defense industry continues to grow. Government agencies including the Cybersecurity and Infrastructure Security Agency (CISA) have issued directives urging heightened vigilance and mitigation efforts to counter these threats.
Urgency for Strategic Response
The collective assessments from government watchdogs, defense analysts, and industry experts point to a critical window for the US to revitalize and secure its defense industrial base. Compared to decades past, the geopolitical landscape is marked by China's rapid military modernization and strategic intent to weaken US capabilities through diverse means. This necessitates more than incremental adjustments; it demands a comprehensive national strategy that bolsters domestic production, ensures supply chain transparency, enhances cybersecurity, and fosters international partnerships to reduce Chinese leverage.
Rising defense budgets aligned with a 4-5% GDP commitment, streamlined industrial policies, and innovative procurement models are essential components of this revitalization. Failure to act decisively risks allowing China to dictate terms and limit America's operational freedom, eroding decades of military advantage.
The US defense industry stands at a strategic crossroads. The deep entanglement of Chinese suppliers and critical materials in the US defense supply chain represents a severe national security threat—one that encompasses espionage, supply denial, sabotage, and cyber warfare. The recent GAO report lays bare the vulnerabilities that could cripple the military’s ability to sustain advanced weapon systems and protect national interests. Urgent, sustained, and multifaceted policy responses are crucial to regain control over critical supply chains and harden the defense industrial base against growing Chinese influence and aggression.