While the U.S. remains a global leader in foundational technologies, several vulnerabilities increase national-level risk:
- Semiconductor fabrication dependency — China controls key elements of the chip supply chain.
- Rare earth minerals — China processes the majority of materials essential for defense systems.
- Manufacturing concentration — Critical components for weapons systems, satellites, and communications gear rely on Chinese suppliers.
- Federal legacy systems — Outdated government systems create exploitable attack surfaces.
- Decentralized cybersecurity governance — Agencies use differing frameworks, creating inconsistencies in risk identification and reporting.
- Defense Industrial Base exposure — Small and midsize contractors remain soft targets for Chinese cyber operations.
These vulnerabilities reduce resilience and increase the strategic advantage of adversarial cyber actors.
U.S. Frameworks:
2024 National Defense Authorization Act (NDAA): Establishes the Outbound Investment Transparency Act, broadening oversight to technologies such as hypersonic and satellite-based communications, thereby complementing E.O. 14105.
2017 National Security Strategy: Explicitly identifies economic policy tools—including sanctions and export restrictions—as instruments of strategic deterrence and coercion.
Chinese Frameworks:
Cybersecurity Law of the People’s Republic of China (Effective June 1, 2017)-