The Implications of US-China Strategic Competition on Global Supply Chain Stability: A Case Study of Semiconductors

Abstract

The strategic competition between the United States and the People's Republic of China has evolved beyond traditional military and diplomatic realms into a fierce contest for technological supremacy. This paper argues that this competition fundamentally destabilizes global supply chains by politicizing their core architecture, transforming them from efficiency-driven networks into instruments of geopolitical power. Using the semiconductor industry as a critical case study, the analysis demonstrates how policies like export controls, sanctions, and onshoring initiatives create systemic fragility, bifurcate markets, and introduce significant uncertainty into the global economy. The paper employs a qualitative analysis of primary policy documents and secondary economic data to trace the causal mechanisms of this disruption. It concludes that the weaponization of interdependence in the tech sector necessitates a re-evaluation of traditional supply chain models and presents profound challenges for global economic governance.