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Mariana El-khouri

Global Supply Chain Risks: A National Security Imperative

Updated: Nov 20

Mariana El-khouri


As nations grow increasingly interconnected, the stakes rise, with critical resources like rare earth elements and modern defense technologies posing serious national security risks. There are increasing concerns about U.S. security and military readiness as adversary states control the supply of these essential resources and geopolitical tensions escalate. The United States is vulnerable to supply chain interruptions, intellectual property theft, and possible sabotage because of its reliance on foreign suppliers for crucial components. Proactive steps must be made to fortify and secure the American supply chain to handle these escalating risks and ensure national resilience in an increasingly uncertain global environment.



When it comes to rare earth elements (REEs), which are essential for a variety of technologies such as consumer electronics, renewable energy, and defense systems, the United States is mostly dependent on foreign sources. Since China alone accounts for around 80% of the world's supply of REEs, it has enormous market power and puts the United States and other countries that depend on these commodities at serious risk. A reliable supply of REEs is crucial for modern military applications such as fighter jets, missile defense systems, and advanced communications equipment. As a result, effectively addressing this issue is paramount to safeguarding national security.

Geopolitical tensions increase the dangers connected to this reliance even further. The International Energy Agency (IEA) has pointed out that rising tensions between major powers, such as those between China and Russia, have exposed the vulnerability of global supply chains.

The manufacturing of vital defense and energy technology, such as electric vehicles and vital military infrastructure, might be seriously hampered by disruptions in the supply of REEs brought on by geopolitical conflicts. The United States may encounter significant obstacles to both its defense readiness and larger energy transition initiatives if access to these commodities is denied or restricted. Diversification of supply sources and domestic manufacturing capabilities is essential, as dependence on China for vital resources poses a significant risk to national security.

Achieving self-sufficiency in vital industries like technology, clean energy, and defense requires investing in domestic REE mining and refining in the United States. The Biden-Harris administration, which recently unveiled new initiatives to increase domestic production through public-private partnerships and federal incentives, has previously acknowledged the significance of safeguarding vital mineral supply chains. To lessen dependency on foreign suppliers, especially China, these programs include tax advantages and subsidies for businesses that innovate in the manufacturing and processing of rare earth elements. The United States may further enhance its economic growth and national security by increasing its domestic mining and refining of REEs, as this will guarantee a steady supply of essential commodities. The administration's initiatives are anticipated to generate thousands of highly skilled employment opportunities, boost the country's competitiveness in crucial industries, and encourage growth in otherwise stagnant mining regions.

It is critical to mitigate dependence on lone suppliers such as China to protect national security, especially regarding vital supplies of technology and commodities. Investing in indigenous production and forming deeper alliances with reliable allies are two ways to diversify the supply chain. To reduce the risks associated with an excessive reliance on China, the U.S.-EU Trade and Technology Council (TTC) provides a robust framework for transatlantic cooperation in areas like semiconductor supply chains and essential minerals. 

The United States, Japan, Australia, and India participate in the Quadrilateral Security Dialogue (Quad), which offers an additional forum for enhancing supply chain resilience in important industries. In addition to improving national security, diversifying supply sources promotes industry stability and innovation. Exiger claims that distributing supply risks over several regions boosts adaptability and lowers susceptibility, protecting the United States from future disruptions. These programs will ensure the United States is able to stay safe and competitive in an increasingly unstable world.


Protecting national security requires bolstering cybersecurity and supply chain openness, particularly in the defense technology industry, where sensitive materials and systems are vulnerable to espionage, sabotage, and intellectual property theft. Prioritizing rigorous cybersecurity procedures and extensive supplier verification is necessary to overcome these issues. As part of this, new rules requiring increased transparency in supply chains will need to be put into place. This will enable early vulnerability discovery and mitigation to prevent attacks from taking advantage of these vulnerabilities. 


One viable approach is using blockchain technology, which provides an unchangeable and visible ledger to manage and safeguard supply chain operations, ensuring accountability and lowering the risk of fraud or tampering. Blockchain, for instance, can offer real-time data on every step of the supply chain, which can be used to spot possible security lapses. The necessity of these technologies is highlighted by the EU's changing import restrictions, as businesses are being held to higher standards of supply chain security and transparency. The United States may guarantee long-term resilience and security by strengthening its defense supply chains against new cyber threats by adopting blockchain and related technology and modifying regulatory regimes.

In today's complex world, addressing global supply chain vulnerabilities is imperative for national security.

Supply chain resilience must be made a top priority by policymakers as a central tactic in defending the country's security interests because relying on foreign suppliers for essential commodities and technologies carries with it a tremendous risk. One can lessen these risks and improve our standing internationally by expanding our resources, putting money into homegrown capabilities, and improving cybersecurity procedures. By taking these proactive measures now, we can ensure that these vital industries can prosper in a more competitive and unpredictable geopolitical world, all the while safeguarding the United States from potential disruptions and laying the groundwork for a more secure and resilient future.

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