Senate Panel OKs US$6 Billion Military Fund to Confront China

Washington: In a move aimed at checking China in the Pacific, a new military fund along the lines of a Senate-crafted version of the Pacific Deterrence Initiative (PDI) is one step closer to becoming law.

The Senate Armed Services Committee (SASC) has approved nearly US$6 billion for the fund in its version of the annual defence policy bill, the panel announced on June 11. It authorises US$1.4 billion in fiscal 2021, which would be US$188.6 million above the administration’s budget request, and US$5.5 billion for fiscal 2022. The bill also directs the defense secretary to create a spending plan for all of the funds.

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“The best way to protect US security and prosperity in Asia is to maintain a credible balance of military power, but, after years of underfunding, America’s ability to do so is at risk,” the committee’s summary stated.

Though not all details of the fund were immediately made public, SASC Chairman Jim Inhofe and ranking member Jack Reed previously said they would sponsor a measure to enable US military operations in the region, beyond supporting new weapons platforms.

Defense Secretary Mark Esper has said China is his department’s top adversary, but said Congress has worked to sharpen the Pentagon’s spending and focus in the region. The PDI would follow the form of the multiyear European Deterrence Initiative, which has consumed US$22 billion since its inception after Russia annexed Crimea from Ukraine in 2014.

Congress will have to internally negotiate the final dollar amount for PDI and what those funds would buy, but House Armed Services Committee Chairman Adam Smith and ranking member Mac Thornberry have expressed support for the idea. Though the Senate’s approach differs, Thornberry has also proposed spending US$6 billion―all in FY21―on priorities that include air and missile defence systems as well as new military construction in partner countries; Smith hasn’t released his own plan.

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Once approved by the full Senate, its version of the NDAA would be reconciled with the House’s version, which the HASC is expected to make public late this month before it goes through markup July 1 and advances to the House floor.

There are also a number of provisions aimed at safeguarding America’s technology and industrial base from Chinese intellectual property theft and “economic aggression,” according to the summary. The bill would also require reports from the Pentagon on how to mitigate the risks from vendors like Chinese telecom firms Huawei and ZTE when basing US troops overseas.

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