Core Insights - Despite bipartisan efforts in the U.S. to decouple the economy from China, the U.S. defense supply chain remains heavily reliant on Chinese suppliers, with Chinese companies accounting for approximately 9.3% of primary suppliers in nine key defense sectors for 2024 [1][2] - The report from Govini highlights vulnerabilities in the U.S. defense supply chain, indicating a significant dependency on foreign suppliers, particularly in missile defense, where reliance on Chinese suppliers reaches 11.1% [1][5] - The number of Chinese suppliers in the nuclear sector has increased by 45.5% year-over-year, with 534 Chinese suppliers compared to 405 from Canada and 366 from the UK [2][4] Dependency on Key Minerals - Many U.S. weapon systems depend on critical minerals predominantly produced by China, with over 1,900 U.S. weapon systems relying on these minerals [5] - The report indicates that approximately 78% of U.S. weapon systems could be affected by China's export controls on critical minerals, which include antimony, gallium, germanium, tungsten, and tellurium [5] - Recent export control measures by China on various minerals have further highlighted the vulnerabilities in the U.S. defense supply chain [4][5] Political Context - The U.S. has been increasingly vocal about the so-called "China threat," with military and intelligence reports labeling China as a significant military and cyber threat [5][6] - The Chinese government has criticized the U.S. for its biased reports and urged for a more stable and healthy development of U.S.-China relations, rejecting the narrative of a "China threat" [6]