U.S. Nuclear Dependence on China: A Strategic Challenge

Key Points:

• The U.S. nuclear industry is heavily dependent on China and Russia for enriched uranium and advanced reactor components.

• This dependence poses a major strategic and security risk for the United States.

• The government is planning new measures to strengthen the domestic nuclear supply chain and reduce foreign reliance.

• Rising electricity demand, driven by AI and data centers, makes energy independence even more urgent.

• Revitalizing the American nuclear sector is essential for national security, technological leadership, and future energy needs.

According to reliable sources, U.S. President Donald Trump is preparing to sign an executive order to revitalize the American nuclear industry. The goal is to simplify approval procedures and strengthen the nuclear fuel supply chain. This decision stems from growing concerns about the United States’ dependence on China and Russia for enriched uranium, fuel processing, and advanced reactor components.

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Trump plans to once again invoke the Defense Production Act, declaring a “national emergency” precisely because of this strategic vulnerability. The new legislation requires federal agencies to identify areas and facilities for new nuclear plants, streamline construction processes, and support the sector through loan guarantees and direct loans.

The push for nuclear energy is also driven by the rising demand for electricity, fueled by the development of artificial intelligence and the expansion of data centers.

According to the Department of Energy, electricity consumption by data centers could triple in the next three years, accounting for 12% of the nation’s total demand.

The draft executive order, reviewed by The New York Times, highlights how the United States has fallen behind China in nuclear expansion. Today, 87% of new reactors built worldwide are based on Chinese or Russian designs. To reverse this trend, the plan calls for a review of safety regulations and aims to quadruple installed nuclear capacity by 2050, from 100 to 400 gigawatts.

The Department of Defense will play a key role by ordering new reactors and installing them on military bases. Additionally, AI data centers will be classified as “critical defense infrastructure,” exempting them from certain regulatory oversight.

Despite the United States still having the largest installed nuclear capacity in the world, the construction of new plants has slowed due to high costs and delays. The last two reactors built took seven years longer than expected and cost twice the initial estimates.

For this reason, the industry is now focusing on a new generation of smaller, less expensive reactors to reduce risks and help the sector recover.y is counting on these smaller reactors to reduce initial costs, thus decreasing the investment risk for utilities and helping the industry achieve cost optimization.

Conclusion

The United States’ reliance on China and Russia for critical nuclear materials and technology exposes a significant strategic vulnerability. As global competition intensifies, reducing this dependence is essential not only for national security but also for maintaining technological leadership and energy independence.

The proposed measures to revitalize the American nuclear sector represent a crucial step toward regaining control over the supply chain and ensuring that the U.S. can meet the growing demands of the future without relying on geopolitical rivals. Addressing this challenge will require sustained investment, innovation, and a clear commitment to strengthening domestic capabilities.

About Extrema Ratio

Extrema Ratio is a leading organization specializing in geopolitical analysis and intelligence, with a particular focus on China’s global influence and the complexities of international relations. Through in-depth research and expert commentary, Extrema Ratio provides valuable insights into national security, foreign interference, and the strategic challenges posed by emerging global powers. The organization’s mission is to inform and educate policymakers, professionals, and the public about the risks and opportunities in today’s rapidly evolving geopolitical landscape. For more analysis and resources, visit Extrema Ratio’s blog and publications.