Sou Hu Cai Jing·2025-09-27 04:51Core Insights - The U.S. military-industrial complex is facing significant challenges despite a record military budget of $895.2 billion for FY2025, which exceeds the combined military budgets of China, Russia, and seven other military powers [1] - The current state of U.S. military production is marked by delays and inefficiencies, with notable examples including the Ford-class aircraft carrier and the F-35 fighter jet, which has seen production halts [1] Group 1: Market Competition and Monopolization - The decline of competition in the U.S. military-industrial sector has led to a monopolistic environment, reducing innovation and increasing costs for the Pentagon [3][5] - Historical market competition during and after World War II fostered a diverse range of manufacturers, but deregulation in the 1980s led to a consolidation of firms, resulting in fewer players like Lockheed Martin and Boeing dominating the market [5] - The lack of competition has allowed companies to increase prices and reduce accountability, exemplified by Lockheed Martin's pricing strategies and Boeing's failed E-7 early warning aircraft tests [5] Group 2: Budget Allocation Issues - The U.S. military's budget allocation is heavily skewed towards ammunition and immediate operational needs, with a 24% increase in ammunition procurement budget to $30.6 billion for FY2024 [7][9] - This focus on short-term needs has led to a neglect of research and development funding, causing significant projects like the F/A-XX sixth-generation fighter and Constellation-class frigate to be delayed or canceled [9] Group 3: Supply Chain Challenges - The U.S. military-industrial complex is heavily reliant on global supply chains, with 19 out of 35 critical minerals sourced primarily from China, impacting production capabilities [10][12] - Supply chain disruptions have contributed to delays in the construction of key military assets, such as the Zumwalt-class destroyer and the F-35 fighter jet [12] Group 4: Export Market Vulnerabilities - The export market for U.S. military equipment is under threat, with 26% of Lockheed Martin's $65.9 billion revenue coming from exports, and Raytheon's export ratio at 39% [14] - Restrictions on exporting advanced equipment like the F-22 and competition from other nations developing their own military technologies further complicate the export landscape [14] Conclusion - The systemic issues within the U.S. military-industrial complex, including monopolization, budget misallocation, and supply chain vulnerabilities, suggest that merely increasing military spending will not resolve the underlying problems [15] - A sustainable military power requires a robust industrial system, effective resource allocation, and a collaborative approach, rather than a focus on arms races [15]