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WASHINGTON (Reuters) – China represents a "significant and growing risk" for the supply of vital materials for the US military, according to a new Pentagon-led report that seeks to address the weaknesses of critical US industries to national security.
FILE PHOTO: The Pentagon in Washington, USA, is seen from the Air Force One boat, March 29, 2018. REUTERS / Yuri Gripas / File Photo
The nearly 150-page report, accessed by Reuters on Thursday prior to its official release on Friday, concluded that there were nearly 300 vulnerabilities that could affect materials and components essential to the US military.
Reuters was the first to report on the main findings of the study on Tuesday.
The analysis included a series of recommendations aimed at strengthening the US industry, including by developing direct investments in areas deemed critical. The specific plans have been listed in a classified annex not yet published.
The report puts a lot of emphasis on China. It has been distinguished for dominating the global supply of essential rare earth minerals in US military applications. The report also noted China's global profile in providing certain types of electronic products as well as chemicals used in US ammunition.
"One of the main conclusions of this report is that China represents a significant and growing risk for the supply of materials and technologies deemed strategic and critical to US national security," the report says.
Relations with China are already tense, with a fierce trade war between the world's two largest economies adding to the tension of cyber-spying, Taiwan's autonomy and freedom of navigation in the South China Sea.
The report could worsen trade tensions with China, reinforcing the Trump administration's "Buy American" initiative, which aims to generate more billions of dollars in arms sales for US manufacturers and create more jobs .
Vice President Mike Pence on Thursday accused China of trying to undermine President Donald Trump ahead of the November 6 legislative elections, saying Beijing "is interfering with American democracy."
Pence's comments echoed those of Trump himself during his remarks at the UN last month, when he said "China was trying to interfere in our upcoming 2018 elections." . The Chinese authorities have rejected this accusation.
The report also examined US shortcomings that contribute to the weakness of the domestic industry, including oversized US defense budgets, which prevent US firms from anticipating government demand. Another weakness mentioned is the teaching of science and technology in the United States.
"Although its findings are not likely to displace markets, they present an alarming picture of US industrial decadence brought about by domestic and foreign factors," said defense consultant Loren Thompson, who has close ties with Boeing Co. other companies.
A senior US administration official, speaking to reporters on condition of anonymity, spoke of several new measures taken to secure supplies for the US military. These include an effort to build up scarce material reserves and expand US manufacturing capabilities in areas such as lithium batteries used in seawater, which are critical to the fight against climate change. underwater.
"There have been market failures here. So we can create new incentives to stimulate investment in areas that allow us to diversify, "said Eric Chewning, Assistant Deputy Secretary of Defense for Industrial Base Policy.
CHINESE DUMPING
Pentagon officials see the risks to national security due to the growing weight of Beijing's military and economic influence and want to be certain that China will not be able to curb the US military by cutting supplies of materials or equipment. sabotaging the technology it exports.
According to the report, 90% of the world's printed circuit boards are now produced in Asia, more than half of them in China, posing a risk to the US defense.
"With the migration of the advanced manufacture of offshore panels, the Ministry of Defense may lose visibility on the provenance of its products," says the report.
The Pentagon has long feared that "disabling switches" could be integrated into transistors that could disable sensitive US systems in a conflict. The report cites the risk of "Trojan chips" and viruses infiltrating US defense systems. "
US intelligence has also warned this year against the possibility that China will use China-made mobile phones and network equipment to spy on Americans.
The report cites sometimes unfair and illegal Chinese efforts to undermine the industry through a multitude of strategies, including subsidizing exports at artificially low prices and stealing US technology.
The report identified many instances where the only remaining US producer of critical materials was about to close and import cheaper materials "from the same foreign producing country that forced them to leave domestic production."
Report by Phil Stewart and Mike Stone; edited by Sandra Maler, G Crosse and Leslie Adler
