General Jack Keane warns that China is executing the most comprehensive penetration of American supply chains in U.S. history, escalating concerns about national vulnerability and adversarial opportunism.
At a Glance
- General Jack Keane says China is embedding itself across U.S. infrastructure, including telecom, pharma, transit, and agriculture
- He calls the strategy “unprecedented” and distinct from normal diplomatic or economic competition
- Keane connects these moves to adversaries like Iran exploiting perceived American indecision
- Analysts urge reshoring and nearshoring as defense measures, though global economic impacts are debated
- U.S. firms are investing billions to rebuild chipmaking and essential supply capabilities at home
A Strategic Threat Beyond Diplomacy
In a stark televised briefing, retired General Jack Keane described China’s expanding grip over U.S. logistics, industrial inputs, and food systems as historically unparalleled. According to Fox Business coverage, Keane warned that Beijing is using global commerce not just for influence, but for potential leverage in a geopolitical crisis.
He cited evidence that China’s presence is growing in sectors ranging from pharmaceuticals to rare-earth materials and even biological manufacturing. This campaign, Keane said, aims to reduce America’s maneuverability in both peacetime and conflict scenarios.
Watch a report: Gen. Keane Sounds Alarm on China’s Strategy.
Iran’s Playbook and Perceived U.S. Weakness
Keane also drew parallels between China’s strategy and Iran’s use of nuclear negotiations to stall and extract concessions. He argued that these governments sense hesitation in American policymaking and are adjusting their timelines to exploit it. The warning aligns with growing concern in defense circles that adversaries are coordinating indirect pressure while avoiding open military conflict.
This dynamic is particularly evident in how Iran is dragging out talks while building regional influence, according to analyst reviews of Tehran’s nuclear strategy. Experts argue this tactic works only when adversaries believe U.S. resolve is fractured or politically constrained.
Domestic Response and Global Consequences
In response, U.S. manufacturers are accelerating investment in critical infrastructure. GlobalFoundries recently pledged $16 billion to expand chip production in New York and Vermont, a move seen as vital to reducing reliance on overseas fabs dominated by Taiwan and China.
Yet not all responses involve domestic reshoring. A Bank of America report found that many U.S. firms prefer nearshoring operations to Mexico due to labor cost and logistics advantages. Meanwhile, the OECD warns that overly aggressive reshoring policies could depress global trade by 18% and slash GDP by up to 12%, as noted in a recent economic analysis.
As Washington balances security needs with economic resilience, Keane’s stark message signals a shifting battlefield—one where infrastructure and industry are as strategic as any aircraft carrier.
