Key Takeaways

  • The DoD is warning companies in the defense industrial base to start planning now for a 2027 mandate that their products be free of parts from certain Chinese companies.
  • Companies connected to banned Chinese parts under Section 1268 must remove those connections and identify new suppliers.
  • The Pentagon has created tools to help companies track second and third level suppliers and qualify new ones.
US Department of Defense Companies in the Defense Industrial Base

Strategic Implications

This warning may indicate the DoD’s growing concern about supply chain risks associated with Chinese components. The creation of a mechanism to track second and third level suppliers suggests an effort to mitigate these risks, but it also raises questions about the complexity and cost of compliance. Companies should take advantage of available commercial supply chain tools to prepare for this deadline.