Business
‘Serious Problem’: America’s Cutting Edge Weaponry Is Dependent On Chinese Tech, Experts Warn
From the Daily Caller News Foundation
By Jake Smith
American defense startups are far too reliant on Chinese parts — and that poses a serious risk of exploitation by Beijing, experts told the Daily Caller News Foundation.
Business is booming as hundreds of defense startups have joined the growing U.S. military-industrial complex since 2021, according to The Wall Street Journal. But defense contractors are heavily dependent on China for parts for weapons systems, including motors, chips and rare earth minerals, which poses potential avenues for Beijing to exploit or hamper American technologies, experts told the DCNF.
“This is a serious problem for two reasons,” John Lee, senior defense expert at the Hudson Institute, told the DCNF. “First, as we saw during the pandemic, over-reliance on Chinese supply chains for components and inputs leaves countries and economies vulnerable to politically or policy-motivated restrictions being imposed by Beijing.”
“Second, components can have elements inserted into them without the knowledge of the end user. This could be spying equipment, channels for China to disable or damage the component from a distance, or even materials that can weaponize the component,” Lee said.
New defense contractors particularly rely on these parts because they don’t enjoy the same cash reserve that the industry giants do, and China makes and sells the parts for a cheaper price.
But these startups don’t want to be so reliant on China, given that the country is actively trying to undermine the U.S. and would likely be an adversary in a global war scenario, industry executives told the WSJ.
Decoupling from China-based entities proves difficult and expensive, defense startups told the WSJ, though it’s the only option in the long term.
“There’s a lot of lip-flapping about national security resilience manufacturing. But there’s no money for us to do this,” Scott Cololismo, CEO of defense startup LAND Energy, told the WSJ. LAND has some funding grants from the Pentagon, but needs more support to thrive, Colosimo explained.
The rare-earth minerals that China provides U.S. defense contractors — including neodymium, yttrium and samarium — are of particular value, given that they are essential for most high-tech military equipment, including laser and missile systems, jet engines, communications devices and even nuclear propulsion systems.
“Critical minerals are the building blocks for many of the most sensitive products in our defense industry,” Adam Savit, director of the China Policy Initiative at the America First Policy Initiative, told the DCNF. “China can abuse its dominant position in other critical mineral supply chains at any time.”
“The only long-term solution to this is to enact comprehensive permitting reform to approve domestic mining projects, and work with allied nations to develop new production when the U.S. lacks the relevant natural resources,” Savit said.
Savit’s warning that China can upset the supply chain of rare earth minerals also invokes a broader problem — China can cut the supply line for any of the parts needed by U.S. defense contractors, for any time or reason it chooses.
“If your supply chain runs dry, you have nothing to sell,” Ryan Beall, founder of drone manufacturer TILT Autonomy, told the WSJ.
‘It’s Alarming’: US-Funded Research Led To Over 1,000 Patents For China-Based Entitieshttps://t.co/tpr0NSD79X
— Daily Caller (@DailyCaller) August 30, 2024
Lee warned that the problem exposes the U.S. and West’s gaps in domestic supply chain capabilities for their respective defense industrial bases, which creates a vacuum that other actors like China find ways to exploit.
China supplies over 90% of the magnets used in motors for ships, missiles, satellites and drones, according to the WSJ. Republican Reps. Elise Stefanik and Rob Wittman sent a letter to an Air Force official last week and called the reliance on China “a serious national security threat,” pointing to an example in a report last year that found the Air Force increased its dependence on China for parts by 69%.
The idea to stop relying on China for resources became more popular after the COVID-19 pandemic, which created massive supply chain shortages in various sectors, including healthcare products. But in the defense capacity, it will take years to produce parts domestically, according to the WSJ.
“There has been a hollowing out of manufacturing and industrial capabilities in the West which provides China with an enormous advantage,” Lee told the DCNF. “In the event of a crisis against a country such as China, this will become very dangerous for the U.S. and its allies.”
Unable to wait for domestic capabilities to improve and increasingly wary of buying from China, new defense contractors are turning to other alternatives for parts, according to the WSJ. Sourcing components from Mexico and Southeast Asia, utilizing 3-D printing and buying parts in bulk have been some of the creative ways contractors are solving the problem.
Industry experts also expect that the U.S. government is likely to restrict some Chinese parts used by contractors in a bid to move toward domestic capabilities, according to the WSJ. Some restrictions on items used to produce cameras and radios already exist.
“If the government wants a U.S. supply chain, that’s fine, but they need to be clear about their requirements, and they need to pay for it,” Beall told the WSJ.
Featured Image: U.S. Navy photo by Mass Communication Specialist 2nd Class Aaron Lau
From LifeSiteNews
Canada’s prime minister said it was a ‘great honor’ to host the U.S. president and praised him for saying Canada wants to work with the U.S. ‘hand-in-hand.’
During the second day of the G7 leaders meeting in the Kananaskis area in Alberta, Canadian Prime Minister Mark Carney praised U.S. President Donald Trump’s world “leadership” despite saying many negative things about him during his election campaign.
While speaking to reporters Monday, Trump hinted that a new trade deal between Canada and the United States was potentially only “weeks” away. This came after a private meeting with Carney before the official G7 talks commenced.
“We’ve developed a very good relationship. And we’re going to be talking about trade and many other things,” Trump told reporters.
Carney was less vocal, however. He used the opportunity to tell reporters he was happy Trump came to his country for the G7 meeting, saying it was a “great honor” to host him.
“This marks the 50th birthday of the G7, and the G7 is nothing without U.S. leadership,” Carney told reporters.
He then spoke about Trump’s “personal leadership” on world issues and praised him for saying Canada wants to work with the U.S. “hand-in-hand.”
Carney ran his election campaign by claiming the Conservative Party would bow to Trump’s demands despite the fact that the party never said such things.
During his federal election campaign, Carney repeatedly took issue with Trump and the U.S. that turned into an anti-American Canadian legacy media frenzy.
However, the reality is, after Carney won the April 28 federal election, Trump praised him, saying, “Canada chose a very talented person.”
Many political pundits have said that Carney owes his win to Trump, as the U.S. president suggested on multiple occasions that he would rather work with Carney than conservative leader Pierre Poilievre.
Trump has routinely suggested that Canada become an American state in recent months, often making such statements while talking about or implementing trade tariffs on Canadian goods.
As for Carney, he has said his government plans to launch a “new economy” in Canada that will involve “deepening” ties to the world.
From the National Citizens Coalition
The National Citizens Coalition (NCC) is sounding the alarm on a critical week for the Carney government, which, despite enjoying an unearned honeymoon in the polls, has delivered zero results for everyday Canadians. As the G7 summit looms large and the House of Commons prepares to adjourn, this is a make-or-break moment for Prime Minister Mark Carney to prove his government is more than empty promises. Canadians are watching, and the NCC is calling out the glaring failures that threaten a grim summer of economic decline, and continued crime, chaos, and rising unemployment.
Housing Minister Gregor Robertson Caught in $10.85 Million Scandal
Recent revelations from Blacklock’s Reporter expose Housing Minister Gregor Robertson’s attempt to conceal $10.85 million in personal property investments during Commons questioning. This shocking lack of transparency from the minister tasked with addressing Canada’s housing crisis raises serious questions about his integrity and ability to prioritize Canadians struggling with skyrocketing costs. While Robertson dodges accountability, and Carney apparently scoffs at providing housing relief to millions suffering under a Liberal-made crisis, young professionals and young families are wondering if they’ll ever have a chance to own a home bigger than Canada’s much-maligned supply of ‘dog-crate condos.’
The NCC demands a full ethics investigation, the resignation of Gregor Robertson — who, as one of the architects of the Vancouver housing crisis, should have never been handed this file to begin with — and immediate action to restore trust in this critical portfolio.
Pipeline Delays and Provincial Obstruction Threaten Economic Growth
The Carney government’s inaction on pipelines is stalling Canada’s economic potential. Despite promises of “nation-building projects,” British Columbia and Quebec continue to block and veto critical energy infrastructure, with Carney failing to assert federal leadership. His vague talk of “consensus” and “decarbonized” barrels has led to zero progress, leaving Alberta’s economy in limbo and Canadians facing higher energy costs. With no clear plan to advance projects, the government is squandering opportunities to create jobs and secure energy sovereignty. The NCC urges Carney to act decisively this week to break the provincial logjam and deliver results.
Immigration Chaos: Lena Diab’s Unchecked Honour System Fails Canadians
Immigration Minister Lena Diab’s reliance on an ‘honour system’ for millions of temporary visitors with expiring visas is a recipe for disaster. As Canada grapples with unsustainable immigration levels, Diab’s apparent plan for millions of temporary workers and failed ‘diploma mill’ attendees assumes compliance without enforcement, ignoring the high-propensity for fraud, and the ongoing and urgent strain on housing, healthcare, and public services. The Liberals’ Strong Borders Act promises reform, but its loaded with unnecessary overreach and vague measures.
A lack of urgency leaves Canadians vulnerable to further crime, chaos, closed emergency rooms, high rents, and failing infrastructure. With immigration continuing to spiral out of control, the NCC calls for concrete action to drastically lower immigration targets, expedite deportations, and prioritize Canadian citizens and the record amounts of unemployed before the House adjourns.
Canadians Deserve Results, Not More Hollow “Elbows up” or “Team Canada” Rhetoric
This week’s G7 summit in Alberta and the impending House adjournment are the Carney government’s last chance to show leadership, before an undeserved summer break for a government that will be overseeing deepening economic decline, rising crime under a refusal to tackle catch-and-release bail, and growing unemployment. Canadians cannot afford another season of unfulfilled promises and unchecked crises. The NCC demands Carney use the G7 platform to secure trade stability, meaningful energy deals with our allies, and table a federal budget to address the cost-of-living crisis made worse by inflationary Liberal spending. Failure to act now will cement an early legacy of inaction and leave Canadians to endure a prolonged period of hardship.
“The Carney government’s honeymoon has been built on hype, not results,” says NCC Director Alexander Brown. “From Gregor Robertson’s hidden millions, to stalled pipelines, to an immigration system in continued disarray, Canadians — and particularly young Canadians — are being let down. This week is Carney’s chance to prove he can deliver beyond the lies that were told to placate a portion of the electorate at the polls. If he fails to act, the economic decline, the crime and chaos, will only worsen, and everyday Canadians will pay the price.
“True Canadian leaders like Alberta Premier Danielle Smith are in attendance at the G7 along with Carney. If actual acts of ‘nation-building,’ and not more net-zero de-growth, do not come naturally to the PM, he should turn to those who have never wavered in their quest to make life more affordable for the hard-working citizens they are privileged to represent, and who know when to get out of the way to allow Canadians to prosper. More of the same internal, ideological sabotage from the Liberals cannot ruin this dire moment for Canada’s rebirth and recovery.”
The NCC calls on all Canadians to hold the Carney government accountable. Join us in demanding transparency, action, and results before the House adjourns and the G7 summit concludes. Together, we can fight for a stronger, more prosperous Canada.
About the National Citizens Coalition: Founded in 1967, the NCC is a non-profit organization dedicated to advocating for individual freedom, lower taxes, less government waste, and a stronger Canada. We hold governments accountable and fight for the interests of everyday Canadians.
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