U.S.–China Economic and Security Review Commission Report: CCP Supply Chain Risks Expand Rapidly

Randall G. Schriver, Vice Chairman of the U.S.–China Economic and Security Review Commission (USCC), at the report release event. (Nov. 18, 2025)

[People News] The U.S.-China Economic and Security Review Commission (USCC), an entity under the U.S. Congress, released its 2025 annual report on Tuesday (Nov. 18). The report warns that Beijing’s actions in the economic, technological, and security spheres are further accelerating systemic risks to the United States and its allies, and urges Congress to take urgent steps to strengthen supply-chain resilience, technological competitiveness, and economic security.

According to a Voice of America report, at the press conference held on Capitol Hill, Commission Chair Reva Price stated that the report was passed with bipartisan unanimity, demonstrating a sense of urgent consensus regarding the challenges from the Chinese Communist Party. She said that in 2025 the CCP sought to portray itself internationally as a “responsible major power,” but its economic and security policies “are entirely inconsistent with that narrative.” She noted that despite China’s economic slowdown, Beijing continues to pour massive investments into high-tech manufacturing, while deploying increasingly aggressive economic tools and using subsidies to drive huge surpluses into global markets, creating price distortions and supply-chain vulnerabilities.

The USCC annual report states that China’s current economic model has created a so-called “two-speed economy”: on one side, domestic demand is weak, the real-estate sector is sluggish, and debt risks continue to climb; on the other side, the government is increasing subsidies for advanced manufacturing and strategic technologies, driving a new round of global excess-capacity spillover. The Commission describes how some emerging markets are experiencing a “China Shock 2.0,” in which local industries face shutdown or collapse due to massive inflows of cheap Chinese products.

In the areas of technology and supply chains, the report warns that Beijing is “weaponizing key nodes of global supply chains,” particularly by building highly concentrated and strategically advantageous industrial systems in fields such as rare earths, advanced magnets, active pharmaceutical ingredients (APIs), and electric-grid equipment. This year, the CCP restricted certain rare-earth exports and later partially relaxed the controls. The Commission says this demonstrates Beijing’s ability to use supply chains as leverage for negotiations and pressure.

Commission Vice Chair Randy Schriver stated that the CCP is advancing its geopolitical goals through intensified economic coercion, gray-zone military operations, and strategic coordination with Russia, Iran, and North Korea. The report notes that over the past year, the Chinese military has ramped up activities around Taiwan and in the South China Sea, and has also expanded its training range to areas near Australia and New Zealand. The report also notes that China’s domestic propaganda apparatus is strengthening wartime narratives to shape public opinion in support of potential military action.

The report also highlights issues with Southeast Asian scam compounds, pointing out that these zones—mostly run by Chinese criminal networks—are causing major financial harm to the United States while also serving as tools for the CCP to extend its policing and security influence.

This year, the USCC presented 28 recommendations to Congress, ten of which are designated as priority actions. These include establishing a unified U.S. economic-security agency to strengthen export-control and sanctions enforcement, reducing reliance on China for pharmaceutical APIs, improving electric-grid equipment security, and strengthening competitiveness in quantum technologies.

Commission Chair Price stated that the Commission will provide detailed briefings to Congress in the coming weeks. She warned that if the United States does not take swift and focused action, “in the most advanced technological sectors, the U.S. may one day find itself dependent on China instead.”

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