China and Iran are increasingly using global supply chains and strategic chokepoints to counter the United States, reshaping the economic war and exposing Washington’s vulnerabilities, according to a report by The Washington Post that examines how, when, where, why and how these strategies are working in today’s changing geopolitical landscape.The report argues that the United States is no longer the only power able to take advantage of the economic chokepoint.China used its dominance over rare earth minerals vital to both civilian and military technologies to retaliate against US tariffs by restricting exports. The move surprised US President Donald Trump, with the president calling it a “real surprise” on social media last April.
Meanwhile, Iran has tightened its grip on the Strait of Hormuz, a vital global oil transit route, effectively blocking energy flows. The shutdown caused global oil prices to rise and contributed to a ceasefire in the six-week conflict with the US and Israel.Henry Farrell, co-author of “Underground Empire,” said, “It turns out that the United States doesn’t have all the choke points. We’re in a world where America can’t escape the things it thought it could escape.”
Domestic impact on US consumers
The economic fallout has reached American families directly.Fuel prices soared, with gasoline surpassing $4 a gallon, while supply chains were affected by the disruption in the Strait of Hormuz. The report mentions rising costs of commodities like fertiliser, aluminium, plastics and even mattresses.Food prices have also been affected. Fresh Del Monte’s chief operating officer warned of a sharp rise in produce costs, including bananas, due to higher diesel prices and the rising cost of plastic resins sourced from the Middle East.
Washington facing criticism due to lack of preparations
The report highlights criticism of the US administration’s response to these developments.Senator Ron Wyden said the Treasury Department failed to assess the potential energy market consequences of a conflict involving Iran. Citing Wyden, the report said Sriprakash Kothari, the nominee to become assistant Treasury secretary for economic policy, told committee staff, “Not only did he not do any work related to energy markets before the war, but he was not aware of anyone at Treasury who did.”“The lack of anticipation has raised concerns about Washington’s ability to respond to rapidly evolving economic threats.
The end of the ‘benign’ global economy
Experts say that these developments symbolize structural changes in the global economic system.“The global economy was designed for the benign environment of the 1990s, when we assumed China and Russia would be our friends. But we live in a time of intense geopolitical competition,” said Edward Fishman, author of “Chokepoints.”Commercial interdependence, once seen as a stabilizing force, is now seen as a vulnerability. The supply chains that drive globalization are increasingly being used as a tool of leverage.
Race to create economic security
In response, major economies are moving to protect themselves.The United States, China, and Europe are investing in domestic production of critical goods and diversifying supply chains to reduce dependence on geopolitical rivals. US Secretary of State Marco Rubio has warned that reliance on foreign supply chains could limit Washington’s strategic options.“There is not one of the leading industries of the 21st century in which we do not have some level of vulnerability, and this has become one of the highest geopolitical priorities we face now,” Rubio said.
A changing global landscape
The report concludes that although China’s dominance in areas such as rare earths may gradually diminish as the US ramps up domestic mining efforts, the broader shift is irreversible.“This process will continue until you have a new global economy,” Fishman was quoted as saying.With nations racing to build economic resilience, the era of interdependence as a guarantee of stability is giving way to one where it can be used as a strategic weapon.