Manufacturing in China has long supported the relatively high standard of living of millions of U.S. residents while helping U.S. corporations profit handsomely. Apple, Tesla, General Motors, Nike, Texas Instruments and Qualcomm have significant manufacturing operations in China. Meanwhile the Chinese government invests in U.S. Treasury and government agency bonds, having purchased about a trillion dollars’ worth over the last decade.

Despite these benefits for the U.S. economy, Defense Secretary Lloyd Austin has stated that China remains the top challenge to U.S. national security interests. According to Assistant Defense Secretary Ely Ratner, major upgrades including new war ships and ballistic-missile submarines, attack helicopter squadrons, and an artillery division headquarters in the region will make U.S. forces more mobile, more distributed, more resilient and more lethal.

In his May 2023 testimony before the Senate Appropriations Subcommittee on Defense, Secretary Austin said the following:

This is a strategy-driven budget […]