Supply-chain Labels as Coercion

Governments may weaponize formal 'supply‑chain risk' designations to pressure technology firms into compliance with defense or surveillance demands, then leverage procurement cancellations to extract concessions. That tactic creates legal exposure, chills private contracting, and forces courts to arbitrate where procurement policy and civil liberties collide. — If normalized, using supply‑chain risk labels as leverage could reshape the relationship between tech firms and the state, chilling innovation and redirecting commercial AI capacity toward contested security uses.