The discovery of Chinese-made alloys in F-35 jets has put US officials on alert as they try to limit vulnerabilities in the Chinese context.
Pentagon steps up efforts to unbundle sprawling global supply chain US defense companies from China, reports WSJ with reference to the heads and representatives of the department.
The Defense Department said it has begun using artificial intelligence to improve the way it analyzes whether parts, electronics and raw materials used by U.S. military contractors come from China and other potential adversaries.
Defense contractors, encouraged by the Pentagon and lawmakers, have said they are phasing out microelectronics and specialty metals from China, one of the world's biggest suppliers. New facilities are being developed in the US to process rare earth minerals, most of which still come mostly from China.
The Pentagon has identified China's rapidly growing military as its primary threat, which drives policy and, as a result, Pentagon spending. According to the Stockholm International Peace Research Institute, China's defense budget increased by 72% from 2012 to 2021.
The growth is fueling US spending on advanced weapons, including long-range missiles and nuclear-powered submarines, and Defense Department officials have said the US is losing its longstanding technological edge in key areas such as satellites and missiles. US defense companies also expect additional military spending in the coming years, partly due to the provision of arms to Ukraine.
Pentagon officials said that relying on China for PCBs or Russia for titanium makes no sense if sanctions or conflict cut off supplies. The recent escalation of tensions over Taiwan has added to the anxiety.
Earlier this month, the Defense Department stopped accepting new F-35 fighter jets made by Lockheed Martin after it was told they contained magnets from Honeywell International with metal alloys made in China.
In recent weeks, Honeywell told the Pentagon that engine components it made for jet aircraft contained two alloys sourced from China that had been converted into magnets. The company said it had identified an alternative supplier, but did not provide details. Honeywell said it continued to deliver high-quality products, and Lockheed Martin said production continued at its Fort Worth, Texas plant. The Pentagon said it expects the steps necessary to resume supplies of the F-35.
Bill LaPlante, the Pentagon's chief of acquisitions, said the continuing investigation is expected to show that the use of Chinese alloys, which has lasted for more than a decade, does not affect the safety or airworthiness of the F-35. However, he said the incident highlighted the continued vulnerability of the defense supply chain, even after efforts to increase transparency.
Pentagon officials have acknowledged for years the potential vulnerability posed by Chinese-supplied raw materials and microelectronics. Those concerns gained prominence during the Trump administration, when a series of Pentagon studies revealed a growing reliance on China and other foreign suppliers. Pentagon officials said the Covid-19 pandemic has shown how fragile supply chains for even high-end weapons have become, and how China remains a source of materials and components, including computer chips and rare-earth minerals used to make magnets and chemicals used in explosive materials.
One of the biggest concerns, according to the Pentagon and industry leaders, is that the U.S. is 80 percent dependent on China for rare-earth elements, sometimes called process minerals, which are used in magnets for weapons guidance systems as well as for commercial applications such as electricity, car batteries. China has invested heavily in rare earth mining and processing in recent decades and dominates the global supply chain.
To restore domestic production, the Pentagon signed two contracts with Lynas Rare Earths to jointly build a refinery in the US using minerals imported from Australia. Amanda Lacaze, chief executive of the Australian company, said it aims to open a refinery in Texas by 2025.
While the rare earth minerals themselves will initially come from Australia, the planned refinery could also provide domestic supplies to the US, Lynas said. Over the past decade, competition from China has forced the closure of two US rare earth mines in Texas and California.
Defense contractors and lobbyists have said they agree with the broad thrust of the Pentagon's efforts to increase domestic production and demand that all materials be tracked. However, some said they had reservations about the additional cost of matching the quality of the material and the length of the process.
Also read: Sanctions are already preventing Russia from producing weapons – NATO adviser
Domestic production of many materials in the US has declined due to cheaper production abroad. According to a survey by consultancy Govini, a division of Poplicus, the number of Chinese companies in the Pentagon's supplier base more than quintupled to 655 between 2012 and 2019.
Mr Laplante said the Pentagon had recently launched a program he called “supply chain lighting”, which uses artificial intelligence and other tools to track the sources of raw materials in real time.< /p> Related video
A bill before Congress, discussed as part of the next defense authorization bill, would ban the use of any Chinese rare earth minerals after 2027. A similar schedule is being considered for printed circuit boards, with a combination of government funding for domestic factories and traceability systems to ensure semiconductor safety. Congressional defense committees have said they want it in place by 2027.
See Special Topic: US-China standoff US lawmakers increasing pressure on big banks over ties to China and Taiwan – ReutersAlso in the US, there is now pressure on defense companies to get rid of any dependence on Chinese materials for the manufacture of weapons. China to introduce sanctions against the heads of US defense companies due to the supply of arms to Taiwan The Chinese Foreign Ministry spokesman said that the sanctions are being introduced to protect the country's sovereignty and security interests. US and Japanese defense ministers discussed deterrence of China and Russia The parties agreed to cooperate to maintain international order. The US is considering introducing sanctions against China to prevent an invasion of Taiwan – Reuters The discussion of sanctions began even after the Russian invasion of Ukraine. Taiwan deploys anti-drone defenses on coastal islands amid China threat Taiwan made the decision after several incidents involving Chinese UAVs.
