The senators’ draft of the annual defense bill puts a new emphasis on technological competition, including industrial policy moves to strengthen US companies.

Congress and China have emerged as the primary culprits for the weakening the US defense industrial base. Those are the most striking findings of a new White House report that takes a deep-dive into the state of defense manufacturing in the United States, sounding alarm bells over the decline in capability and the rise of China’s industrial might.

These single points of failure already limit military modernization and potentially could disrupt operations in a crisis. That’s especially true if production needed to ramp up urgently for a major war, a subject the chairman of the Joint Chiefs of Staff, Gen. Joseph Dunford, has publicly angsted about.

With an Executive Order and a new study due soon that promises to take a hard line against Chinese imports, the Trump administration is opening a new front, while protecting the US defense industry.

A new Government Accountability Office report scolds the Department of Defense for failing to figure out which rare earth elements are critical to national security — China controls the world market — and for not developing plans to make sure the United States has enough even though Congress passed a law telling them to five years… Keep reading →