The News
The head of one of the largest US defense contractors said Thursday that China is “closing the gap” on American military dominance, and added that her firm had engaged in talks with Washington for a contract to help build a proposed missile defense shield.
At Semafor’s World Economy Summit, Northrop Grumman CEO Kathy Warden said that, though she supported Elon Musk’s Department of Government Efficiency and its efforts to slash government spending, the US needs to spend more on defense because the “national security environment is getting more challenging.”
“China is closing the gap on the United States’ superiority, and so we do need to spend more, and we have seen bipartisan support from Congress to do that,” Warden said.
Beijing has ramped up its military spending in recent years, and now possesses the world’s largest naval battle fleet — roughly 400 ships against the US Navy’s 300, according to a report by a Washington-based think tank. Its artificial intelligence prowess is also catching up with that of the US, including its development of AI technologies for military use.
At the summit, Warden touted US President Donald Trump’s proposed missile defense shield — the “Golden Dome” — “as a bold new initiative” that when coupled with increased defense spending “will really make a difference on the battlefield.”
When asked if Northrop Grumman had engaged in talks with the US government for a contract to build the Golden Dome, Warden said, “We have,” noting that it didn’t entail just one contract.
Reuters reported last week that Elon Musk’s SpaceX was a frontrunner in a bid to build key parts of the shield, modeled on Israel’s Iron Dome anti-missile system.
The Semafor View
Beijing is facing significant challenges to its economy, but how Chinese officials choose to navigate those risks could look quite different to other countries’ approach. Beijing wants to project influence abroad, and for global companies there is a need to balance supply chain shifts with China’s push into cutting edge technologies.