Instead of battling over tariffs, Washington and Beijing have turned to a potentially far more harmful strategy: flexing their control over global supply chains.The New York Times reports that instead of engaging in a trade war over tariffs, the United States and China have shifted their focus to controlling global supply chains, a potentially more damaging strategy. This shift has been marked by restrictions on the sharing of critical technologies, which could have long-lasting effects on various industries. Last week, the U.S. suspended sales of components and software used in jet engines and semiconductors to China, in response to Beijing’s clampdown on the export of minerals used in manufacturing. Both sides have accused each other of acting in bad faith. This supply chain warfare, coupled with the tariffs imposed by both countries, has raised concerns among companies that rely on components from both nations. It has also raised concerns among U.S. officials about other areas where China could potentially disrupt the supply chain, such as pharmaceuticals and shipping. The airplane industry has become a key battleground in this fight, as jet engine technology and navigation systems largely come from the U.S., but minerals processed in China are essential for their production. This has put the industry in a vulnerable position, as it relies on both countries for different components.
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