US ambassador warns about risks of overseas supply chains

The U.S. is looking to reshape its trade ties with China and other countries by bringing key supply chains back home, according to David Perdue, the new U.S. ambassador to China. Speaking at a dinner in Washington on Thursday, Perdue said that relying too much on foreign supply chains creates risks, as global trade has led to weaknesses where one country can control critical goods.

Perdue, who started his role last month, stressed that trade with China needs to be fair and benefit both sides. He pointed out that the U.S. can’t depend heavily on other nations for essential items like rare earth minerals, used in everything from electric motors to defense equipment. This comes as tensions rise over President Donald Trump’s tariff plans, which aim to reduce U.S. reliance on foreign goods but have sparked concerns about trade disruptions.

While Trump pushes for quick trade wins, China’s control over rare earths gives it leverage in talks. Perdue’s comments highlight the U.S. goal of building stronger, more secure supply chains at home. However, he also told American businesses in China that the U.S. supports their presence, suggesting a balance between cooperation and reducing risks. As trade talks continue, both sides are navigating a complex path to avoid further economic strain.