China expanding its industrial dominance, warns US business group

May 11, 2026 - 03:44

A major US business group has issued a stark warning that China is rapidly expanding its dominance across global industrial sectors, and that Western nations are running out of time to reduce their dependence on Chinese supply chains. The report, released by the American Chamber of Commerce, argues that Beijing's strategic investments in advanced manufacturing, clean energy, and critical minerals have created a level of economic leverage that the West can no longer ignore.

According to the Chamber's analysis, China now controls a significant share of the world's production capacity for solar panels, batteries, and rare earth processing. The group warns that this concentration poses a serious risk to Western economic security and strategic autonomy. While governments in the US and Europe have begun to push for "de-risking" and reshoring key industries, the Chamber suggests these efforts remain too slow and fragmented.

The report specifically highlights that China is not just a low-cost assembler anymore but is moving up the value chain into high-tech sectors like electric vehicles and artificial intelligence. The business group cautions that without a coordinated and urgent policy response, the West will find itself locked into a position of permanent dependency. The warning comes as trade tensions continue to simmer, with both sides imposing new tariffs and export controls. The Chamber's message is clear: the window for action is closing fast.