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There’s more, though. The U.S. has no domestic production of the high-tech magnets required to manufacture military-grade Humvees, Apache helicopters, or Virginia-class submarines. And there is only a single domestic manufacturer of the large-diameter copper-nickel tubing used in U.S. Navy ships. The sole alternative – a European conglomerate – has been cited for anti-competitive practices including price fixing and dumping.
This near-total dependence for critical components and raw materials creates worrisome risks. For example, Beijing could withhold access to lanthanum or other raw materials over which it exercises a near-monopoly to force up the price; inhibit a U.S. technological advantage; pressure the U.S. to resolve disputes on terms favorable to China; or worse, completely withhold supplies.
These are serious gaps in our armor. Our security and our ability to develop future battlefield capabilities are dependent on potentially unreliable supplier nations who might not have our best interests at heart in a crisis situation.
We didn’t
reach this position of dependence overnight. In truth, a combination of inattention and uncoordinated U.S. policy responses to global economic challenges has resulted in the hollowing-out of our high-tech manufacturing base.
U.S. manufacturing has gradually migrated offshore. And though U.S. manufacturing remains highly productive, and
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