Topic > Supply Chain Security: Chinese Influence on American Industry

Earlier this month, Bloomberg published an alarming report alleging that Chinese manufacturers had installed malicious microchips in computer equipment destined for U.S. technology companies , like Amazon and Apple. This same article even insinuated that some of the damaged equipment had found its way to the Department of Defense and the CIA. Although the above-mentioned companies and agencies have vehemently denied this attack by the Chinese, the question arises: could this really happen? The prospect of a foreign adversary planting microchips on computer servers with the goal of disrupting and monitoring the digital activities of millions of Americans is nothing short of frightening. American technology companies in the computer manufacturing sector must have a competent, vigilant but aggressive supply chain management apparatus to avoid these types of scenarios. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay To truly grasp the threats to supply chain management, you must first define it properly. Supply chain management is a broad term that encompasses efforts to reduce internal and external threats such as terrorism and piracy, both in cyberattacks and in reality. These threats are not just limited to US government systems or big tech companies, but also to the general public. To analyze this problem we must ask ourselves: how did we get to this point? According to the Defense Intelligence Agency's 2018 Worldwide Threat Assessment, China's military has continued to implement the sweeping organizational reforms that President Xi Jinping unveiled in 2015. This reorganization is the latest phase of China's long-term military modernization program , which has been called essential to achieving great power status and what the Chinese leadership considers the “Chinese dream of national rejuvenation.” The Chinese leadership views a strong military as critical to advancing China's interests and ensuring that China can defend itself and its sovereignty claims. This “rejuvenation” aims to enhance the Chinese military's capabilities to improve many of its operations, in particular, to strengthen the Chinese Communist Party's control over the armed forces. Changes introduced over the past year have reduced the size of the Central Military Commission, streamlined its control over the PLA, and propagated reform to lower- and lower-level units. The PLA is also strengthening its joint operational command system and developing its new Strategic Support Force, which consolidates cyber and electronic warfare. Last year, China announced a 6.5 percent increase in its annual military budget, according to a Financial Times report. , at $154.3 billion, second only to the United States. This budget extends more than two decades of annual defense spending increases, leading China to be able to sustain cyber operations for the foreseeable future. A major investment in China's military budget, particularly in strengthening its cyber operations, may lead to an explanation for possible problems with supply chain management and security. As China continues to modernize its military cyber operations, another avenue for potential conflicts in supply chain management is the continued tension between the United States and China over trade. The Trump administration has made computer equipment and hardware of.