US–China Strategic CompetitionGreat Power Rivalry

Supply chain crisis exposes China dependence

_US Politics/__Asia-Pacific

Summary

The global chip shortage and port congestion crisis of 2021 made visible what economists had long warned: advanced economies were dangerously dependent on Chinese manufacturing and Taiwanese semiconductors. The political case for industrial policy and friend-shoring crystallised.

How the semiconductor crisis accelerated political will for reshoring and supply chain diversification.

Early legislative action that would become the CHIPS Act, explicitly framed as a response to Chinese competition.

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