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Economy

Beyond Chips: How China Accuses US of Economic Bullying in Semiconductor Supply Chain Battle

China accuses the US of “economic bullying” after a diplomat urged Mexico to cut reliance on Chinese semiconductors.

byAndres Castro

October 1, 2025, 4:14 PM

Executive Summary

China’s embassy in Mexico accused the U.S. of “economic bullying” and imposing geopolitical competition after a U.S. diplomat urged Mexico to reduce reliance on Chinese-made semiconductors.

U.S. diplomat Mark Johnson stated the U.S. “will not tolerate dependence on critical technologies from China” and emphasized Mexico’s key role in diversifying supply chains.

China’s embassy described the U.S. rhetoric as “erecting trade barriers, issuing threats and practising economic bullying,” revealing Washington’s true intentions to impose geopolitical competition.

The Story So Far

The United States is actively pursuing a strategy to diversify and de-risk critical technology supply chains, particularly semiconductors, away from China, viewing dependence as a security risk and urging countries like Mexico to play a key role in this effort. China, however, interprets these U.S. actions as “economic bullying” and an attempt to impose geopolitical competition, aiming to contain its economic influence and technological advancement. This dynamic places Mexico at the center of escalating U.S.-China tensions over technological leadership and supply chain security.

Why This Matters

The escalating US pressure on Mexico to diversify semiconductor supply chains away from China, characterized by Beijing as “economic bullying” and an imposition of geopolitical competition, highlights the deepening technological and economic rivalry between the two global powers, ultimately placing Mexico in a critical and potentially challenging position as both nations vie for strategic alliances in key industries.

Who Thinks What?

Mark Johnson, the U.S. chargé d’affaires in Mexico, asserted that the United States will not tolerate dependence on critical technologies from China and urged Mexico to play a key role in diversifying and de-risking supply chains.

China’s embassy in Mexico accused the U.S. of “economic bullying,” stating that Washington’s push to reduce reliance on Chinese semiconductors reveals an intention to impose geopolitical competition, erect trade barriers, and issue threats.

China’s embassy in Mexico has sharply criticized comments made by a senior U.S. diplomat, accusing the United States of “economic bullying” and imposing geopolitical competition in its push to reduce reliance on Chinese-made semiconductors. The rebuke came after Mark Johnson, the chargé d’affaires at the U.S. embassy in Mexico, urged Mexico to play a “key role” in Washington’s efforts to secure its supply chains.

US Diplomat’s Push for Supply Chain Diversification

Speaking at the Mexico-US Semiconductor Forum, Johnson stated that the United States “will not tolerate dependence on critical technologies from China.” He emphasized Mexico’s importance in this strategy, highlighting a broader U.S. government initiative to diversify and de-risk supply chains away from China.

China’s Accusations of Economic Bullying

In a statement posted on X on Wednesday, the Chinese embassy in Mexico said Johnson’s remarks “revealed Washington’s true intentions.” The embassy described the U.S. rhetoric as brazenly exposing a mentality to “impose geopolitical competition on others.”

The embassy further elaborated that what the U.S. calls “not tolerating dependence” amounts to “erecting trade barriers, issuing threats and practising economic bullying.” This statement underscores Beijing’s view of U.S. supply chain policies as coercive measures aimed at containing China’s economic influence.

Geopolitical Tensions and Semiconductor Supply Chains

The incident highlights the escalating tensions between China and the United States over technological leadership and supply chain security. Mexico finds itself at the center of this geopolitical competition as both global powers vie for influence and strategic alliances in critical industries like semiconductors.