The U.S. Defense Authorization Act Highlights the Obsession with "Competition with China"

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Reference News Network reported on August 8 According to the Hong Kong South China Morning Post website on August 6, the U.S. Fiscal Year 2027 National Defense Authorization Act reflects a broad consensus between the Democratic and Republican parties on expanding military, technological, and economic confrontation with China.

Although there are differences in some provisions between the House and Senate versions of the bill, both include new measures regarding Taiwan, artificial intelligence, the defense supply chain, and responses to changes in the South China Sea situation, highlighting that competition with China has permeated all aspects of U.S. national security policy.

The House has passed the Fiscal Year 2027 National Defense Authorization Act, while the Senate is working to review and approve it before the August recess next week.

The two chambers also need to reconcile their differences regarding the bill's text before it can be submitted to President Trump for signing.

Experts say that the tone of this year's National Defense Authorization Act is fundamentally similar to past bills, but there are notable new contents regarding a wide range of issues from defense procurement and supply chains to artificial intelligence, industrial policy, and economic security, specifically targeting China.

Advocating "First Island Chain Security Cooperation"

Dr. Guo Laiyi, a China expert at the German Marshall Fund, stated that the National Defense Authorization Act is increasingly being used to enhance the capability to resist China while strengthening defense relations between the U.S. and its allies and partners.

She pointed out that the bill particularly emphasizes "enhancing the capability to resist China, and improving Taiwan's readiness and resilience."

Taiwan remains a key focus of the National Defense Authorization Act. Due to the potential for conflict with Beijing, the Senate version of the bill pays more attention to Taiwan issues.

The Senate version of the bill will establish a "war reserve stockpile program" for Taiwan, authorizing the pre-deployment of supplies, ammunition, missiles, and other military equipment to enhance Taiwan's readiness in the event of a conflict.

Dr. Guo said that the bill reflects a clear consensus between the two parties: enhancing Taiwan's "deterrence" capability is central to maintaining peace and stability in the Taiwan Strait.

The Senate version also plans to rename the "Taiwan Security Cooperation Initiative" to the "First Island Chain Security Cooperation Initiative" and expand it to include the Philippines in the list of countries and regions eligible for military support under the program.

Aim to Decouple Supply Chains

One of the clearest themes of the National Defense Authorization Act is to reduce the Pentagon's dependence on Chinese products and suppliers.

A briefing from the House Armed Services Committee states that the bill seeks to "remove China from our defense supply chain."

The House version of the bill will prohibit the Department of Defense from procuring humanoid robotic systems, photovoltaic cells, solar panels, and inverters made in China, as well as used shipping vessels manufactured in China.

The House version also includes workforce development programs to support critical mineral mining, aimed at reducing dependence on China in this area.

The Senate version requires an annual assessment of the contribution of advanced artificial intelligence chips to China's military capabilities and will prohibit defense contractors from sharing sensitive synthetic biology information with China.

Both versions of the bill seek to prohibit the use of fiber optics and connected vehicles made in China.

Zach Cooper, a senior fellow at the American Enterprise Institute, stated that the most important provisions related to China aim to prevent China from obtaining advanced artificial intelligence chips, cloud computing, and semiconductor manufacturing equipment.

He said it is still unclear whether these export control measures will be retained in the final version of the bill, "but there is momentum moving in that direction."

Other provisions emphasize strengthening research security and attempting to prevent sensitive technologies from benefiting the Chinese military. Specific measures include restricting collaboration with Chinese academic institutions and imposing new "insider threat reporting" requirements on large artificial intelligence contractors.

Desire to Strengthen Coordination with Asian Allies

Compared to a decade ago, the attention given to the South China Sea issue in Congress may have decreased, but the Senate version of the bill requires the Pentagon to draft a "crisis strategy" for the region within a year, identifying potential flashpoints and outlining a phased response plan for coordination with various federal agencies and foreign partners.

Evan Sankey, a researcher at the Cato Institute, expressed surprise at this provision.

In addition to measures targeting China, the Senate version of the bill will also expand regional programs, deepen military partnerships with the Philippines and Australia, and assess Japan's defense capabilities—an action clearly aimed at enhancing U.S. military presence in the Indo-Pacific region and solidifying its alliances.

Sankey stated that overall, the National Defense Authorization Act maintains its standard position on China: Beijing is "a strategic competitor with ambitions to dominate Asia." (Translated by Yang Xinpeng)

Classification
Region
North America, East Asia & Pacific
Analytical Domain
Strategic
Primary Category / Secondary Categories
Political-Military / Military Operations, Logistics
SALUTE Report
Size
Not specified
Activity
The U.S. Congress is advancing the National Defense Authorization Act for FY 2027, which includes measures to enhance military and economic competition with China, particularly regarding Taiwan and technology.
Location
Taiwan · South China Sea · United States
Unit
U.S. Congress
Time
August 2023
Equipment
military suppliesammunitionmissilesmilitary equipment
Summary

The U.S. Congress is advancing the FY 2027 National Defense Authorization Act, which includes measures to enhance military readiness in Taiwan and reduce dependence on Chinese products. The act emphasizes a crisis strategy for the South China Sea and aims to strengthen defense relationships with allies, reflecting a bipartisan consensus on countering China's influence.

Key Facts
  • The U.S. Congress is advancing the FY 2027 National Defense Authorization Act.
  • The act includes measures to enhance military readiness in Taiwan.
  • There is a focus on reducing dependence on Chinese products in defense supply chains.
  • The Senate version emphasizes a crisis strategy for the South China Sea.
  • The act aims to strengthen defense relationships with allies in the region.