The U.S.-China trade war has shifted from tariffs to export controls, with both nations weaponizing their supply chains. China controls critical rare earth minerals needed for electronics and defense, while the U.S. dominates advanced semiconductor technology.
In a recent standoff, China restricted rare earth magnet exports and the U.S. halted shipments of jet engines and chip-making software. While they reached a temporary six-month deal, the ongoing uncertainty is forcing companies to split their operations—treating the U.S. and China as two separate markets with independent supply chains.