……Report highlights market distortion, gray-zone tactics, supply chain risks via authoritarian alliances
Washington, Nov. 19, 2025 – The U.S.-China Economic and Security Review Commission (UCESRC) has labeled China as global destabilizing factor.
The report said this in its annual report submitted to Congress on the 18th.
“While China claims to be a ‘responsible steward’ of the global economy and international order, it is evaluated as a destabilizing actor in the international system by deepening cooperation with authoritarian states such as North Korea.”
The report highlighted issues including market distortion through overproduction and subsidies gray-zone activities and military threats and weaponization of supply chain bottlenecks.
Established under the National Defense Authorization Act (NDAA) in October 2000, the commission is a bipartisan advisory body under Congress that annually reports to lawmakers on the implications of U.S.-China trade and economic relations for national security.
Reba Fries, a former aide to Nancy Pelosi, the ex-Speaker of the U.S. House of Representatives, serves as chair, and Randall Schriver, who was Deputy Minister for Indo-Pacific Affairs at the Department of Defense during the first Trump administration, is vice chair.
The commission urged, in its report released that day, that the U.S. government strengthens its defensive measures and rebuild its industrial and technological foundations to secure a long-term competitive edge over China, which it described as posing structural and strategic challenges across all domains.
The report noted that China achieved “unprecedented export-driven growth” this year, recording its largest-ever trade surplus of over 1 trillion dollars, attributing this to “super-scale production capacity” enabled by state subsidies, which has led to dumping in global markets.
It observed that the resulting damage has spread worldwide: “In Southeast Asia, low-priced Chinese products have caused factory closures and mass unemployment, while in Africa and Latin America, political instability and dependence on China have deepened.”
The report added: “This threatens the manufacturing bases of the U.S. and its allies, posing a national security risk.”
As seen during the ‘tariff war’ with China after U.S. President Donald Trump took office, the report also focused on the weaponization of supply chain bottlenecks, particularly for critical minerals like rare earths.
It stated: “China is pursuing a strategy to reduce foreign dependence in key areas—such as basic semiconductors, active pharmaceutical ingredients, and strategic minerals—while increasing the world’s reliance on itself.”
It warned that if China halts exports of certain items, “the U.S. could face immediate disruptions, including shortages of essentials like medicines and paralysis of critical infrastructure such as energy, finance, power, and communications.”
Since the 2020s, China has been conducting the so-called ‘Volt Typhoon (volt typhoon)’ operation, using hacker groups reportedly supported by the Communist Party to attack critical infrastructure across multiple U.S. industrial sectors.
The report also mentioned the expansion of China’s ‘gray-zone’ activities, stating: “In the South China Sea, it is escalating tensions by pushing the envelope to the brink of conventional conflict with the Philippines, while outside the region, it is expanding gray-zone tactics like undersea cable cuts and cyberattacks.”
Such behavior has recently become prominent in the West Sea (Yellow Sea), where China has been installing illegal structures and pressuring South Korean coast guard and survey vessels.
The report pointed out that China is prolonging the Ukraine war by supplying Russia with ‘dual-use’ technologies for military purposes and coordinating with Iran, adding: “The sanctions evasion and wartime logistics techniques learned through this could be applied to a Taiwan invasion scenario.”
Regarding the escalating cross-Strait tensions, the report noted: “The People’s Liberation Army (PLA) has prepared a system that can immediately transition from training to blockade and invasion, and is already fostering a wartime atmosphere domestically by creating a gap between internal propaganda and external messaging.”
As key policies to address these crises, the report proposed consolidating export control and sanctions enforcement under a single agency, and strengthening enforcement authority by integrating intelligence collected by the Central Intelligence Agency (CIA) with other industrial information.
Additional recommendations included removing Chinese components from power grids tightening controls on advanced semiconductor chips establishing a task force (TF) and enhancing international cooperation to counter Southeast Asian scam centers building infrastructure to become a leader in quantum technology industrializing biotechnology strategies and strengthening procurement policies to restore pharmaceutical supply chains and build alliance-focused supply networks. (The CHOSUN daily)
……Report highlights market distortion, gray-zone tactics, supply chain risks via authoritarian alliances
Washington, Nov. 19, 2025 – The U.S.-China Economic and Security Review Commission (UCESRC) has labeled China as global destabilizing factor.
The said this in its annual report submitted to Congress on the 18th.
“While China claims to be a ‘responsible steward’ of the global economy and international order, it is evaluated as a destabilizing actor in the international system by deepening cooperation with authoritarian states such as North Korea.”
The report highlighted issues including market distortion through overproduction and subsidies gray-zone activities and military threats and weaponization of supply chain bottlenecks.
Established under the National Defense Authorization Act (NDAA) in October 2000, the commission is a bipartisan advisory body under Congress that annually reports to lawmakers on the implications of U.S.-China trade and economic relations for national security.
Reba Fries, a former aide to Nancy Pelosi, the ex-Speaker of the U.S. House of Representatives, serves as chair, and Randall Schriver, who was Deputy Minister for Indo-Pacific Affairs at the Department of Defense during the first Trump administration, is vice chair.
The commission urged, in its report released that day, that the U.S. government strengthens its defensive measures and rebuild its industrial and technological foundations to secure a long-term competitive edge over China, which it described as posing structural and strategic challenges across all domains.
The report noted that China achieved “unprecedented export-driven growth” this year, recording its largest-ever trade surplus of over 1 trillion dollars, attributing this to “super-scale production capacity” enabled by state subsidies, which has led to dumping in global markets.
It observed that the resulting damage has spread worldwide: “In Southeast Asia, low-priced Chinese products have caused factory closures and mass unemployment, while in Africa and Latin America, political instability and dependence on China have deepened.”
The report added: “This threatens the manufacturing bases of the U.S. and its allies, posing a national security risk.”
As seen during the ‘tariff war’ with China after U.S. President Donald Trump took office, the report also focused on the weaponization of supply chain bottlenecks, particularly for critical minerals like rare earths.
It stated: “China is pursuing a strategy to reduce foreign dependence in key areas—such as basic semiconductors, active pharmaceutical ingredients, and strategic minerals—while increasing the world’s reliance on itself.”
It warned that if China halts exports of certain items, “the U.S. could face immediate disruptions, including shortages of essentials like medicines and paralysis of critical infrastructure such as energy, finance, power, and communications.”
Since the 2020s, China has been conducting the so-called ‘Volt Typhoon (volt typhoon)’ operation, using hacker groups reportedly supported by the Communist Party to attack critical infrastructure across multiple U.S. industrial sectors.
The report also mentioned the expansion of China’s ‘gray-zone’ activities, stating: “In the South China Sea, it is escalating tensions by pushing the envelope to the brink of conventional conflict with the Philippines, while outside the region, it is expanding gray-zone tactics like undersea cable cuts and cyberattacks.”
Such behavior has recently become prominent in the West Sea (Yellow Sea), where China has been installing illegal structures and pressuring South Korean coast guard and survey vessels.
The report pointed out that China is prolonging the Ukraine war by supplying Russia with ‘dual-use’ technologies for military purposes and coordinating with Iran, adding: “The sanctions evasion and wartime logistics techniques learned through this could be applied to a Taiwan invasion scenario.”
Regarding the escalating cross-Strait tensions, the report noted: “The People’s Liberation Army (PLA) has prepared a system that can immediately transition from training to blockade and invasion, and is already fostering a wartime atmosphere domestically by creating a gap between internal propaganda and external messaging.”
As key policies to address these crises, the report proposed consolidating export control and sanctions enforcement under a single agency, and strengthening enforcement authority by integrating intelligence collected by the Central Intelligence Agency (CIA) with other industrial information.
Additional recommendations included removing Chinese components from power grids tightening controls on advanced semiconductor chips establishing a task force (TF) and enhancing international cooperation to counter Southeast Asian scam centers building infrastructure to become a leader in quantum technology industrializing biotechnology strategies and strengthening procurement policies to restore pharmaceutical supply chains and build alliance-focused supply networks. (The CHOSUN daily)
