Abstract:Based on inter-country input-output tables distinguishing firm ownership released by Organisation for Economic Co-operation and Development (OECD), this paper introduced counterfactual analysis to simulate the impact of supply-chains disruption between China and the United States (U.S.) and explore the dependence of China's manufacturing industry on the U.S. from perspective of supply chains. The results show that although China's direct imports of intermediates from the U.S. accounted for only 0.79% of the total intermediate use of China's manufacturing industry in 2016, the cut-off of intermediates by global US-funded enterprises and their related enterprises would lead to an output loss of China's manufacturing industry at 6.36%. Assuming that the intermediates imported from the U.S. were irreplaceable in short term, the output loss of China's manufacturing industry would further expand to 10%-20%. The results provide policy implications for the construction of supply chain resilience in China.