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The U.S. military is the most powerful in the world, with unparalleled technology and equipment. What many people don't know, however, is that the U.S. military is also the world's largest consumer of Chinese manufacturing. Everything from ammunition to boots, satellites to warplanes can be outsourced.
Why does the US military use Made in China? And what benefits and risks does Chinese manufacturing bring to the US military? In this invisible war, what challenges and opportunities does China's manufacturing industry face?
The US military leases Chinese satellites
The United States considers itself a global leader, with a powerful military and sophisticated scientific and technological capabilities. Recently, however, shocking news has emerged: the U.S. Department of Defense has rented Chinese satellites to provide communications services to the U.S. military. This move triggered a fierce reaction and controversy from the US Congress and the public, believing that doing so seriously threatened the intelligence security and national interests of the United States.
In 2013, the U.S. Congress was at loggerheads over the Defense Department's lease of the Chinese-developed Asia-Pacific 7 satellite. Launched in 2008, the high-orbit communications satellite covers Africa, the Middle East, Europe and Australia, and is the result of the China Aerospace Science and Technology Corporation.
Members of Congress believe that the US military is equivalent to packing its own classified information and sending it to China, handing over control of information to China, which seriously threatens US intelligence security. He also questioned whether the Pentagon had enough budget to buy its own satellites or share satellite resources with allies.
Some people are dissatisfied with the behavior of the US military: "China's Huawei is not allowed to sell mobile phones in the United States, why does the US military use Chinese-made satellites to transmit military signals?" ”
Although the Pentagon has long used commercial satellites heavily for unclassified military communications needs, the U.S. military insists that Asia-Pacific 7 is the only option for the U.S. military. However, there has long been a long-term sensitivity to the fact of using satellites made "Chinese".
In fact, the U.S. military used Chinese satellites as early as 2000. In one war, the U.S. military leased Chinese satellites for communications support. There was also some controversy at the time, but the response was not as great as this time.
Of course, the US military rents Chinese satellites not out of trust or friendship with China, but out of its own needs and interests. But doing so is not without risks and costs. On the one hand, the U.S. military may expose its own plans and intentions to China or other adversaries, increasing uncertainty and risk on the battlefield. On the other hand, the U.S. military may also lose its technological superiority and dominance in the satellite field, giving China or other competitors the opportunity to narrow or even surpass its own gap.
The US military wears Chinese clothing
In addition to using Chinese satellites, the U.S. military has a ridiculous "secret": Most of the clothes they wear are also made in China. From military boots to national flags, berets to body armor, Made in China has become the "standard" for American soldiers. This has made some Americans who love their country feel dissatisfied and helpless, and at the same time worried and embarrassed some people who are concerned about national defense and security.
In 2012, before an American soldier was sent to Afghanistan, troops reportedly gave him a pair of boots printed with "Made in China," and the soldier was so upset that he asked for a replacement for American-made boots. But when he arrived in Afghanistan, he received another pair of military boots with the words "Made in China" printed on them. He sent another series of inquiries to see how he could change to American-made boots. But this time, he got a two-word response: "Good luck."
In fact, not only the boots of the US military, but also the stars and stripes that American soldiers wave everywhere, 95% of which are made in China. In 2014, the sensitive U.S. government learned of the phenomenon and immediately passed a proposal requiring the Department of Defense to purchase only the flag "made in USA."
So why did the U.S. military choose to wear Chinese clothing? There are several reasons for this:
First of all, it is because of the price advantage. After decades of development, China's garment industry has formed a perfect industrial chain and supply chain, with high production efficiency and low production costs. In contrast, the U.S. apparel industry is affected by high labor, materials, taxes and other factors, and the price is relatively high.
Secondly, it is because of quality assurance. China's garment industry not only has mature production technology and management experience, but also constantly improves its product quality and design level, meeting the needs and preferences of different customers. In contrast, the U.S. apparel industry faces the dilemma of declining competitiveness and shrinking market, lacking innovation and motivation to adapt to changing needs and trends.
Finally, it is because of market share. China's apparel industry has become the world's largest exporter and consumer of clothing, accounting for a large part of the U.S. market. In 2019, China's clothing exports to the United States totaled US$27.98 billion, accounting for 29.7% of total U.S. apparel imports. The U.S. apparel industry accounts for only about 3% of the U.S. market.
The US military sells Chinese arms
If it is understandable that the U.S. military buys Chinese-made clothing for economic reasons, the U.S. military clearly doesn't stop there, and they have even bought expired Chinese-made arms, which sounds like an absurd joke, but it has happened. The movie "Arms Dealer" adapts one of the stories, telling the thrilling process of two young people who take advantage of loopholes in the US government to import cheap weapons from China and sell them to the US military at a high price.
The film is based on an article in Rolling Stone magazine by Guy Lawson, who interviewed the real protagonists, David Packouz and Efraim Diveroli, and reviewed numerous court documents and government reports to recreate their adventures.
David and Efraim, two young Jews in Miami, founded a company called AEY Inc. in 2005 that specializes in the arms trade. They use websites set up by the U.S. government to encourage small and medium-sized enterprises to bid to find small contracts to import low-priced weapons and ammunition from other countries and sell them to the U.S. military.
Their biggest deal came in 2007, when they won a $300 million contract to supply the Afghan government with 100 million rounds of AK-47 rounds. However, these bullets are not freshly baked, but made in China in the 60s of the last century and piled up in Albania for decades.
To hide this fact, David and Efraim hired local workers to unload the bullets from the old packaging, rebox them, and remove the "Made in China" logo.
This is a clear violation of contractual provisions and international law, since the United States Government prohibits the purchase of weapons from hostile countries and requires fresh and reliable ammunition. David and Efraim also know they're playing with fire, but they're tempted by huge profits and are desperate to close the deal. However, they were eventually exposed because they owed Albanian workers wages, leading the workers to report their actions to the media and authorities.
On March 27, 2008, David and Efraim were arrested by the FBI and charged with fraud, conspiracy and weapons law violations. They eventually pleaded guilty and were sentenced to imprisonment. David was sentenced to 7 months in prison and 4 months in home imprisonment; Efraim was sentenced to four years in prison and fined $200,000. Their company, AEY Inc., was also disqualified from all contracts with the U.S. government.
The U.S. military's purchase of Chinese-made arms is not unique. In 2009, the U.S. Department of Defense admitted that it had imported a shipment of expired flares from China for use on battlefields in Iraq and Afghanistan. The flares were supplied by a company called AEY Inc., which was David's and Efraim's rival.
The U.S. Department of Defense said it did not know that the flares were made in China or that they had expired. They also said they had stopped working together and were investigating the matter.
In short, the purchase of Chinese-made arms by the US military reflects the chaos and inefficiency of the US military equipment procurement system. Because the U.S. government outsources many arms and equipment purchases to private companies in order to save budgets and encourage competition, these companies often lack regulation and transparency, and focus only on profit over quality and safety. This gives some criminals the opportunity to use various means to import cheap or expired arms from China and other places, and then sell them to the US military or its allies at high prices.
The US president advertises Chinese manufacturing
In addition to the U.S. military buying Chinese-made products and arms, the U.S. president will also promote Made in China. In 2013, U.S. President Barack Obama gave a speech at the Port of Miami touting the importance and advantages of U.S. manufacturing.
However, on a crane behind him, there is an obvious Chinese trademark - Zhenhua Heavy Industries. The logo was originally obscured by the American flag, but a gust of wind blew the flag away, allowing Obama to inadvertently advertise for Made in China. This scene was filmed by the media and triggered ridicule and discussion among netizens.
Zhenhua Heavy Industries is one of the largest port machinery manufacturers in China and a major supplier to the Port of Miami. Song Hailiang, chairman of Zhenhua Heavy Industries, said at the Boao Forum that he thanked Obama for advertising Zhenhua Heavy Industry intentionally or unintentionally, and he was ready to send him $30 million. He also said that Zhenhua Heavy Industries can succeed in the US market because of their high product quality, low price, good service and compliance with US environmental standards.
epilogue
Through the introduction of the above aspects, we can see the dependence and contradictions of the United States on China's manufacturing. On the one hand, the US government and military have imposed various restrictions and prohibitions on Chinese manufacturing for security and political reasons; On the other hand, the U.S. market and military are inseparable because of the characteristics of high quality and low price, excellent performance and stable supply made in China.
This dependence and contradiction became more acute after the Sino-US trade war. On the one hand, it has to endure the reality that the US military uses Chinese satellites, drones, military boots, national flags, body armor and other military equipment. While advocating "trade protectionism", it has to admit that American weapons such as F35 and Standard 3 missiles also have Chinese-made components.
For China's manufacturing industry, this dependence and contradiction also bring challenges and opportunities. The challenge lies in how to deal with the pressure of trade barriers, technology blockade, market competition and other pressures of the United States; How to improve the level of independent innovation ability, brand influence, quality standards, etc.; How to solve problems such as excess capacity, environmental pollution, and labor costs.
The opportunity lies in how to use its own scale advantages, cost advantages, market advantages and other resources; How to grasp the trends of new technologies, new formats, and new consumption; How to expand domestic and foreign markets, increase added value, enhance competitiveness and so on.
In short, China's manufacturing industry should seek development in change, seek breakthroughs in development, and seek leadership in breakthroughs.