Congress discusses China's influence on US manufacturing and supply chain vulnerabilities

During a recent meeting of the U.S. House Committee on Oversight and Government Reform, lawmakers emphasized the urgent need to revitalize American manufacturing and address the growing influence of China in the global market. The discussions highlighted significant concerns regarding trade policies and national security, particularly in relation to the Department of Defense's supply chains.

Key points raised included the alarming statistic that China held a 7% share of the global manufacturing market as of February 2025, a stark contrast to its position 25 years ago. Lawmakers criticized the lack of enforcement of trade violations by China, particularly after granting the country most favored nation status. This leniency has allowed China to strengthen its manufacturing capabilities, often at the expense of U.S. interests.

The committee members pointed out that major U.S. technology companies, such as Apple, have contributed to this trend by outsourcing manufacturing to firms like Foxconn. This shift has resulted in a significant transfer of advanced manufacturing processes and intellectual property overseas, raising concerns about the long-term implications for U.S. competitiveness.

Additionally, the meeting addressed the extensive use of waivers within the Department of Defense, which has led to vulnerabilities in critical supply chains. Lawmakers noted that these waivers often allow for the inclusion of components sourced from China, creating a complex web of relationships that could jeopardize national security.

The overarching goal of the committee is to bring manufacturing back to the United States, either through onshoring or nearshoring strategies. However, members acknowledged that the current trade policies have not been effectively managed, underscoring the need for a comprehensive review and enforcement of existing regulations.

As the committee continues its work, the discussions signal a pivotal moment for U.S. manufacturing, with potential implications for economic stability and national security in the years to come.