Former US National Security Adviser Lt Gen (rtd) H. R. McMaster emphasized the urgent need for the US and its allies to secure critical technologies and supply chains amidst escalating strategic competition with China. McMaster, speaking at the Thrive 2026 conference at Stanford University, expressed concerns over the vulnerability of supply chains due to past prioritization of efficiency over resilience. He highlighted China’s strategic use of its economic model to challenge free market economies, particularly in areas like artificial intelligence and energy.
The competition, according to McMaster, extends beyond technology to a broader attempt by China and other actors to reshape global rules in alignment with authoritarian governance. He stressed the difficulty of establishing shared global standards, noting the reluctance of the Chinese Communist Party to adhere to rules perceived as against their interests. McMaster urged companies to adopt stringent safeguards, proposing a “Hippocratic oath” for boardrooms to prevent aiding adversaries or compromising long-term interests.
Pointing to risks associated with past US investments in Chinese firms involved in military and surveillance systems, McMaster underscored ongoing concerns regarding intellectual property theft and state-backed competition. He also addressed weaknesses in supply chains for critical minerals, attributing the reliance on China to environmental regulations in the West. McMaster called for increased investment in extraction and refining technologies to address these vulnerabilities.
Rebuilding supply chains, McMaster emphasized, necessitates collaboration with allies, particularly in sectors like shipbuilding and semiconductors where multinational cooperation is crucial. While advocating for caution in sensitive research areas, McMaster warned against limiting academic exchanges, citing potential negative impacts on innovation and knowledge sharing. He also highlighted the growing risk of disruption to semiconductor supplies in Taiwan, cautioning against actions that could lead to global economic consequences.
Governments, McMaster suggested, might need to intervene where market mechanisms fail to safeguard national security interests, acknowledging potential economic costs in pursuit of strategic resilience.
