U.S. defense startups are too reliant on Chinese-made components, posing a serious risk of exploitation by the Chinese government, experts told the Daily Caller News Foundation.

Business is booming since 2021, with hundreds of defense startups joining the growing U.S. military-industrial complex. According to In the Wall Street Journal. But defense contractors rely heavily on China for parts for weapons systems such as motors, chips and rare earth minerals, which experts say could allow Beijing to misuse or sabotage U.S. technology. told DCNF. (Related: U.S.-funded research helps strengthen China’s military, Congressional report says)

“This is a serious problem for two reasons,” John Lee, a senior defense expert at the Hudson Institute, told DCNF. “First, as we saw during the pandemic, over-reliance on Chinese supply chains for components and raw materials makes countries and economies more susceptible to political or policy restrictions imposed by the Chinese government. It’s becoming more vulnerable.”

“Second, elements could be inserted into the component without the end user’s knowledge. This could serve as spy equipment, a route for China to remotely disable or damage the component, or even weaponize the component. “It could be a substance that can do that,” Lee said.

New defense contractors are particularly dependent on these parts. That’s because they don’t enjoy the cash reserves of industry giants, and China manufactures and sells parts at lower prices.

However, these startups do not want to be so dependent on China, considering that China is actively trying to undermine the United States and would likely become an adversary in a global war scenario. , industry executives told WSJ.

Separating from China-based entities has proven difficult and expensive, defense startups told the Journal, but in the long run it is the only option.

“There’s a lot of talk about national security resilient manufacturing, but we don’t have the money to do this,” Scott Colorismo, CEO of defense startup LAND Energy, told the Journal. Colosimo explained that LAND receives funding from the Department of Defense, but needs more support to grow.

Rare earth minerals such as neodymium, yttrium, and samarium that China supplies to U.S. defense contractors are especially valuable given that they are essential to most high-tech military equipment, including lasers and missile systems, jet engines, and communications equipment. be. Nuclear propulsion system.

“Critical minerals are the building blocks of many of the most sensitive products in our nation’s defense industry,” Adam Savitt, director of the America First Policy Initiative’s China Policy Initiative, told DCNF. “China can always abuse its dominant position in other critical mineral supply chains.”

“The only long-term solution to this is to enact comprehensive permitting reform to approve domestic mining projects and work with allies to create new resources where the United States is in short supply of relevant natural resources. The goal is to develop new production,” Savitt said. (Related article: Military mission in Iraq to end – but not a withdrawal, US officials say)

Savitt’s warning that China could disrupt rare earth mineral supply chains also raises broader issues. China can cut off supply lines for parts needed by U.S. defense contractors at any time and for any reason.

“If the supply chain dries up, there’s nothing left to sell,” Ryan Beal, founder of drone maker TILT Autonomy, told WSJ.

‘Alarming’: US-funded research grants China-based company more than 1,000 patentshttps://t.co/tpr0NSD79X

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Lee said the issue has exposed gaps in domestic supply chain capabilities in the U.S. and Western countries’ respective defense industrial bases, creating a vacuum that other actors such as China could find ways to exploit. I warned you that there was.

According to the WSJ, China supplies more than 90% of the magnets used in the motors of ships, missiles, satellites and drones. Republican Reps. Elise Stefanik and Rob Wittman letter A report last year found the Air Force had increased its reliance on China for parts by 69%, writing to Air Force officials last week that it said dependence on China was a “serious national security threat.” Here is an example.

The idea of ​​ending dependence on China for resources became even more popular after the COVID-19 pandemic, which caused massive supply chain shortages in various sectors, including healthcare products. However, given the country’s defense capabilities, it would take years to produce the parts domestically, according to WSJ.

“Manufacturing and industrial capacity is being hollowed out in Western countries, and this is giving China a tremendous advantage,” Li told DCNF. “A crisis against a country like China would be extremely dangerous for the United States and its allies.”

Unable to wait for domestic capabilities to improve and increasingly wary of purchasing from China, new defense contractors are turning to other alternatives for parts, according to WSJ. It is said that there is. Sourcing parts from Mexico and Southeast Asia, using 3D printing, and buying parts in bulk are some of the creative ways contractors are solving problems.

According to WSJ, industry experts also predict that the U.S. government is likely to restrict the use of some Chinese components by contractors in an effort to move toward domestic production. Some restrictions already exist for items used in the manufacture of cameras and radios.

“If the government wants a U.S. supply chain, that’s fine, but the government needs to clarify its requirements and pay for it,” Beer told the Journal.

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