In recent years, the Pentagon and the U.S. Congress have been emphasizing the security and risks of the supply chain, continuously passing legislation to reduce reliance on supplies from China. However, a new report from a data analysis company shows that “Made in China” products still exist in the supply chain of the Air Force and defense agencies. Nevertheless, this report also provides a precise direction for the United States to develop a more comprehensive policy towards China.
The U.S. data analysis company, Govini, released its latest report “THE 2024 NATIONAL SECURITY SCORECARD CRITICAL TECHNOLOGIES”.
Robert O. Work, the chairman of Govini and former Deputy Secretary of Defense, and Tara Murphy Dougherty, the CEO, stated in the preface of the report, “Beijing continues to aggressively advance its defense modernization, from hypersonic missiles to artificial intelligence weapon systems. It is attempting to undermine the long-standing advantage of maintaining peace and prosperity in the Indo-Pacific region and globally.”
Regarding the analysis showing the presence of Chinese suppliers in the supply chain ecosystems of critical technologies such as biotechnology, advanced manufacturing, robotics, and automation, Walk and Dougherty emphasized, “This is unacceptable, and our response measures must be a national priority.”
They stated that the report also highlights the opportunity for the United States to regain its advantage. By understanding the key technology trends, supply chain risks, and supplier ecosystems in this report, the U.S. can make better decisions based on data to surpass competitors.
Citing Dougherty, the well-known U.S. defense media, “Defense One,” reported, “In our daily collaboration with these project offices, the problems are overwhelming. The good news is…in some places, in some areas, the Department of Defense has started actively managing the supply chain.”
The report examined 15 key technologies procured by the Pentagon: biotechnology, data visualization and interfaces, nuclear modernization, advanced communication and network sensing technologies, space technology, gas turbine engine technology, advanced manufacturing, clean energy generation and storage, artificial intelligence and machine learning, advanced engineering materials, robots and autonomous systems, semiconductors and microelectronics, hypersonic technology, advanced computing and directed energy technology.
These technology fields cover various aspects from energy, communications to artificial intelligence and space technology, representing crucial directions in current technological development.
The report indicated that last year, the U.S. Navy reduced the number of Chinese suppliers in its “critical technology” supply chain by 40.6%; the Army reduced it by 17% from 2022 to 2023.
The COVID-19 pandemic highlighted the vulnerability of the U.S. supply chain and the issue of overreliance on Chinese suppliers in U.S. weapon production. Since Congress passed a ban on Chinese-made communication technology in 2018, Pentagon leaders and lawmakers have been urging defense department agencies to decrease reliance on Chinese-made components and equipment to develop a more flexible supply chain.
In January of this year, the Pentagon issued its first National Defense Industrial Strategy (NDIS) to increase U.S. defense industrial production capacity and establish a modern, flexible defense industrial ecosystem. Subsequently, a network-centric strategic document was also released, both emphasizing the security and risks of the supply chain.
However, some defense officials are not receptive to blaming project delays or cost overruns on supply chain issues, despite some stabilization of supply chain challenges to some extent over the past four years. The lack of unified policies in managing suppliers remains a challenge that the United States faces.
According to Dougherty cited by “Defense One,” “We know that we can never completely eliminate China from the U.S. supply chain. That is not our goal.”
Dougherty pointed out that the goal of the United States is to manage foreign suppliers and ensure that they possess appropriate production capabilities and sufficient supply. Sensitive technologies are fully protected, and these sensitive components can only either directly come from the U.S. or from allies.