The departing U.S. ambassador to Japan, Rahm Emanuel, recently made remarks that have generated a lot of debate about the dangers that American defense companies pose compared to those of China.
In an interview in Tokyo on January 9, 2025, Emanuel said, “the U.S. defense industry is a bigger risk to America’s security and the credibility of our deterrence than China is.” He underlined that American defense firms are putting more money into stock buybacks than into expanding their production capabilities, which he claims has caused delays in the delivery of weapons that are essential to the military readiness of the United States and its allies.
Emanuel voiced worry that these business practices erode alliances and threaten American security interests. He pointed out that he frequently had to use his political clout to correct defense companies’ tardiness in delivering essential equipment. Large defense contractors like Lockheed Martin and RTX spent 18.9 billion dollars on stock buybacks in 2023, a substantial amount more than they spent on capital investments ($4.1 billion).
This viewpoint demonstrates a growing apprehension in U.S. defense policy circles regarding the industrial base’s capacity to satisfy national security requirements in the face of intensifying competition from China. Emanuel’s comments show a critical perspective on how business interests can conflict with national security goals, potentially making the United States vulnerable in a world that is becoming more and more competitive.
Emanuel’s observations highlight the intricate relationship between national security and corporate interests, especially as the United States negotiates its strategic stance toward China and other international threats.
