Envoy says sloppy American defence firms ‘bigger risk’ to US security than China

Ambassador Rahm Emanuel said the firms are more focused on increasing their stock value than on investing in production capacity. This has contributed to delays in weapons shipments, which could harm US security and weaken American alliances, he said in an interview on Wednesday.

“The US defence industry is a bigger risk to America’s security and the credibility of our deterrence than China is,” Emanuel said in Tokyo.

Emanuel, who was confirmed as ambassador to Japan in 2021, said he had witnessed the damaging impact of years-long delays in defence equipment shipments on both the US military and its regional allies. “I can’t tell you how many times here I’ve had to use my political capital to cover for their failure,” he said.

One solution – he added – would be to ban defence contractors from buying back their own stock for several years if they fail to deliver orders on time.