Advisor Peter Navarro [AP=Yonhap News]

The U.S. administration under Donald Trump is significantly tightening regulations on the weapon production supply chain.

It will make the approval process for exemptions more stringent while systematically identifying suppliers at every stage. This is part of a broader plan to exclude China and reorganize the defense supply chain around the U.S. and its allies.

On the 20th (local time), President Trump signed an executive order titled "Securing the Nation's Defense Industrial Base and Ensuring Domestic Sourcing of Critical Minerals" at the White House.

The core of the order is that, starting next January, obtaining exemptions for sourcing sensitive materials for weapon production from non-allied countries—such as China, Russia, North Korea, and Iran—will become much more difficult.

Since the weapon production supply chain consists of multiple tiers, contractors must identify and explain all suppliers involved at every stage when applying for an exemption from authorities.

It will no longer be sufficient to claim that Chinese components are the cheapest or easiest to obtain; contractors must also prove that they have made sufficient efforts to source U.S.-made alternatives. Concealing information could result in contract termination if discovered.

The executive order also includes a provision instructing the Secretary of Defense to establish regulations that will allow for the systematic mapping of the critical supply chain, from raw materials to final products, for items designated as national security procurement items by the Department of Defense.

A clause was also included requiring contractors who rely on materials or parts from unreliable foreign suppliers to promptly find compliant alternatives.

Peter Navarro, White House Director of Trade and Manufacturing Policy, said in a conference call prior to the signing, "Saying 'I haven't tried anything and I have no options' will no longer be acceptable."

Navarro stated, "This is not about targeting China, but about addressing reliance on other nations," while adding, "As China increasingly and brazenly weaponizes its supply chain, we must take measures to resolve our vulnerabilities."

He emphasized, "The Trump administration's goal is to build a strong and resilient domestic supply chain," and added, "We will cooperate with our allies as much as possible."

This executive order is interpreted as a move to address the intense competition with China, particularly in fields like critical minerals.

The objective is to tighten regulations to ensure that non-transparent Chinese firms are excluded from the U.S. weapon supply chain, while simultaneously strengthening the domestic capabilities of the U.S. and its allies to catch up with China, which currently maintains a significant lead in the processing of critical minerals.

It also appears to be intended to reduce reliance on China as much as possible while U.S. defense companies accelerate production to replenish stockpiles depleted by the war in Iran.

Regarding the refining of the critical mineral germanium, Navarro noted that the U.S. will possess the capacity to meet three times its domestic demand within this year. He added, "Over time, we will be able to supply germanium to Japan, Europe, and South Korea, which are facing the weaponization of (critical minerals) by China."