#analysis
Amid China’s economic challenges, such as high youth unemployment and a troubled real estate market, some policymakers believe Beijing will need to cut its defense spending. However, China’s defense industrial base continues to grow rapidly, developing advanced weapons systems to deter and challenge U.S. military dominance. China is now the world’s largest shipbuilder and has significantly increased its production of modern fighter aircraft, warships, and missiles. With its defense industry on a wartime footing, China acquires weapons at a pace five to six times faster than the United States. To keep pace, the U.S. must urgently revitalize its own defense production capabilities to maintain its military readiness and deter potential conflict with China.