From the Daily Caller News Foundation 

By Jake Smith

American defense startups are far too reliant on Chinese parts — and that poses a serious risk of exploitation by Beijing, experts told the Daily Caller News Foundation.

Business is booming as hundreds of defense startups have joined the growing U.S. military-industrial complex since 2021, according to The Wall Street Journal. But defense contractors are heavily dependent on China for parts for weapons systems, including motors, chips and rare earth minerals, which poses potential avenues for Beijing to exploit or hamper American technologies, experts told the DCNF.

“This is a serious problem for two reasons,” John Lee, senior defense expert at the Hudson Institute, told the DCNF. “First, as we saw during the pandemic, over-reliance on Chinese supply chains for components and inputs leaves countries and economies vulnerable to politically or policy-motivated restrictions being imposed by Beijing.”

“Second, components can have elements inserted into them without the knowledge of the end user. This could be spying equipment, channels for China to disable or damage the component from a distance, or even materials that can weaponize the component,” Lee said.

New defense contractors particularly rely on these parts because they don’t enjoy the same cash reserve that the industry giants do, and China makes and sells the parts for a cheaper price.

But these startups don’t want to be so reliant on China, given that the country is actively trying to undermine the U.S. and would likely be an adversary in a global war scenario, industry executives told the WSJ.

Decoupling from China-based entities proves difficult and expensive, defense startups told the WSJ, though it’s the only option in the long term.

“There’s a lot of lip-flapping about national security resilience manufacturing. But there’s no money for us to do this,” Scott Cololismo, CEO of defense startup LAND Energy, told the WSJ. LAND has some funding grants from the Pentagon, but needs more support to thrive, Colosimo explained.

The rare-earth minerals that China provides U.S. defense contractors — including neodymium, yttrium and samarium — are of particular value, given that they are essential for most high-tech military equipment, including laser and missile systems, jet engines, communications devices and even nuclear propulsion systems.

“Critical minerals are the building blocks for many of the most sensitive products in our defense industry,” Adam Savit, director of the China Policy Initiative at the America First Policy Initiative, told the DCNF. “China can abuse its dominant position in other critical mineral supply chains at any time.”

“The only long-term solution to this is to enact comprehensive permitting reform to approve domestic mining projects, and work with allied nations to develop new production when the U.S. lacks the relevant natural resources,” Savit said.

Savit’s warning that China can upset the supply chain of rare earth minerals also invokes a broader problem — China can cut the supply line for any of the parts needed by U.S. defense contractors, for any time or reason it chooses.

“If your supply chain runs dry, you have nothing to sell,” Ryan Beall, founder of drone manufacturer TILT Autonomy, told the WSJ.

‘It’s Alarming’: US-Funded Research Led To Over 1,000 Patents For China-Based Entitieshttps://t.co/tpr0NSD79X

— Daily Caller (@DailyCaller) August 30, 2024

Lee warned that the problem exposes the U.S. and West’s gaps in domestic supply chain capabilities for their respective defense industrial bases, which creates a vacuum that other actors like China find ways to exploit.

China supplies over 90% of the magnets used in motors for ships, missiles, satellites and drones, according to the WSJ. Republican Reps. Elise Stefanik and Rob Wittman sent a letter to an Air Force official last week and called the reliance on China “a serious national security threat,” pointing to an example in a report last year that found the Air Force increased its dependence on China for parts by 69%.

The idea to stop relying on China for resources became more popular after the COVID-19 pandemic, which created massive supply chain shortages in various sectors, including healthcare products. But in the defense capacity, it will take years to produce parts domestically, according to the WSJ.

“There has been a hollowing out of manufacturing and industrial capabilities in the West which provides China with an enormous advantage,” Lee told the DCNF. “In the event of a crisis against a country such as China, this will become very dangerous for the U.S. and its allies.”

Unable to wait for domestic capabilities to improve and increasingly wary of buying from China, new defense contractors are turning to other alternatives for parts, according to the WSJ. Sourcing components from Mexico and Southeast Asia, utilizing 3-D printing and buying parts in bulk have been some of the creative ways contractors are solving the problem.

Industry experts also expect that the U.S. government is likely to restrict some Chinese parts used by contractors in a bid to move toward domestic capabilities, according to the WSJ. Some restrictions on items used to produce cameras and radios already exist.

“If the government wants a U.S. supply chain, that’s fine, but they need to be clear about their requirements, and they need to pay for it,” Beall told the WSJ.

Featured Image: U.S. Navy photo by Mass Communication Specialist 2nd Class Aaron Lau

From LifeSiteNews

By Emily Mangiaracina

Demographer and data analyst Stephen Shaw has said that ‘no society in history has been known to come out of’ the ‘spiral’ of population decline.

Greece plans to spend 20 billion euros on economic incentives aimed at halting the country’s population decline, which Prime Minister Kyriakos Mitsotakis has called a “national threat.”

The nation that has been referred to as the “cradle of civilization” now has a fertility rate of 1.3, one of the lowest in Europe, and far below the rate of 2.1 that is needed to maintain the population.

In fact, the country now has twice as many deaths as it has births. Last year, Mitsotakis shared during a demographics conference that Greece recorded one birth for every two deaths in 2022.

On September 30, a demographic plan to incentivize having children, totaling 20 billion euros, was presented to Greece’s government. The money will be spent on tax breaks, day care vouchers as well as the establishment of day care centers in workplaces, and cash benefits rewards for raising children. Families with three or more children will receive greater compensation.

Family and Social Cohesion Minister Sofia Zacharaki said on October 2 that “the ultimate goal” of the plan “is to improve the standard of living.”

She noted that, according to current forecasts, by 2070 the biggest population group will be people over 90 years old.

The country is one of many undergoing different phases of population decline headed toward collapse. Greece’s particularly low birth rate may be further exacerbated by the economic hardships plaguing the country, which in July had the second-highest unemployment rate in the EU.

Demography experts such as data analyst Stephen Shaw, the creator of the documentary “Birthgap,” are skeptical about whether economic incentives can reverse the trend of population decline. He has noted that even the Roman Empire, in its later stages, enacted policies aimed at increasing birth rates, including taxing the childless.

According to Shaw, “No society in history has been known to come out of” the “spiral” of population decline.

In his film “Birthgap,” he has documented how declining birth rates in the U.S. and around the world are being driven by an “explosion” in childlessness as opposed to smaller family sizes.

This trend of childlessness began to crop up in the 1970s. For example, in Japan in 1974, one in 20 women were childless. By 1977, the ratio was 1 in 4, and by 1990, it had reached 1 in 3, a statistic that held in 2020. Shaw has shared that most countries have likewise now become “childless nations,” where one-third or more people will become “childless for life.”

It is notable that the Institute for Family Studies (IFS) confirmed in December 2022 that the majority of childless women actually desire children. Delayed childbearing, and as Shaw commented in his film, failing to “find the right partner at the right time” are major factors contributing to the childlessness explosion.

Commentators such as Elon Musk have warned that if global birth rates continue to decline at their current projected rates, “human civilization will end.”