American defense industry hype: Sino-US conflict has been brewing for nearly 50 years, and now it is a "protracted war"

【Text by Observer Net, Xiong Chaoran】On October 10 local time, Palmer Luckey, founder of the U.S. artificial intelligence defense industry company Anduril Industries, complained during an interview with Bloomberg Television that the U.S. defense manufacturing supply chain is overly dependent on China.

"We must get rid of the Chinese supply chain," Luckey claimed: "We need to re-industrialize, we need our own rare earth supply, and we need to produce our own chips and computers; China has a lot of influence." He claimed that Anduril has made considerable progress in decoupling from China, but then shifted to hype: "My concern is not about Anduril."

Meanwhile, as the Sino-U.S. economic and trade rivalry continues, Shyam Sankar, chief technology officer of Anduril, claimed that the conflict between the two countries has been brewing for nearly 50 years. On the other hand, Brian Schimpf, CEO of Anduril, asserted that the current tariff confrontation will be a "long-term conflict" between the United States and China, saying, "We must be prepared for it."

On June 17, 2025, an autonomous aerial vehicle (AAV) of Anduril Industries was displayed at the 55th Paris Air Show. Photo provided.

Bloomberg reports that Anduril Industries is the largest among many U.S. defense technology startups, which aim to use artificial intelligence and autonomous software to control drones, fighter jets, submarines, and other vehicles, thereby modernizing the U.S. military.

The report emphasizes that the U.S. is developing this industry mainly because of "intensifying competition with China".

Schimpf said he expects the company's revenue this year to double, reaching over $2 billion, and its production will also increase by 400%. Luckey said the company's production could grow again next year.

According to reports, companies like Anduril Industries and Palantir Technologies have long viewed China as a potential competitor and aimed to develop U.S. defense technology.

Sankar believes that China is "stronger in overall capacity", but the U.S. "has the best software globally".

Bloomberg states that in recent years, venture capitalists have increased their attention on the defense sector, driven by concerns over geopolitical tensions and optimism about possible reforms in U.S. procurement policies that may benefit startups.

Some industry figures are especially worried that the U.S. might be at a disadvantage in the drone arms race with China, so they are eager to expand manufacturing capabilities, which is part of a high-cost plan to establish new U.S. defense factories. According to data from PitchBook, investors injected nearly $2 billion into the U.S. defense technology sector in the second quarter of this year, a 200% increase compared to the same period last year.

The senior executives of Anduril are promoting the idea of decoupling the U.S. defense manufacturing industry from China at a time when China released two announcements on October 9 regarding enhanced export controls on rare earth-related items.

According to the new regulations published by the Ministry of Commerce of China on October 9, China will impose export controls on certain rare earth-related items that contain Chinese components and rare earth-related technologies. The Financial Times of the UK stated that this means any foreign company exporting magnets that contain Chinese rare earth components or use Chinese rare earth mining, smelting, and magnet-making technologies must obtain approval from China.

The new regulations cover rare earth magnets and some semiconductor materials containing 0.1% or more Chinese heavy rare earth components manufactured abroad, as well as certain items produced overseas using rare earth mining, smelting separation, metal smelting, magnet manufacturing, and rare earth secondary resource recycling technologies originally from China. These items will be subject to the new regulations starting December 1st; for some items originally from China, the new regulations will take effect immediately. Additionally, China will "generally not approve" export licenses for most military uses. Export applications involving AI with potential military use will also be "reviewed on a case-by-case basis".

On October 9, the spokesperson for the Ministry of Commerce responded to questions regarding the strengthened export control of rare earth-related items, stating that rare earth-related items have dual civil and military attributes, and implementing export controls is an international practice. Therefore, the Chinese government is legally regulating certain rare earth-related items that contain Chinese components, aiming to better safeguard national security and interests, and fulfill international obligations such as non-proliferation.

As a responsible major country, China's implementation of controls on relevant items reflects its firm commitment to maintaining world peace and regional stability, and actively participating in international efforts against proliferation. China is willing to strengthen communication and cooperation with all parties through multilateral and bilateral export control dialogue mechanisms, promote compliant trade, and ensure the safety and stability of the global supply chain and industrial chain.

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Original article: https://www.toutiao.com/article/7559846330832437794/

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