U.S. Ambassador to Japan Rahm Emanuel has called for strict punitive measures against defense firms that miss deadlines or inflate costs, including banning such firms from bidding on contracts and imposing a five-year prohibition on stock buybacks until obligations are fulfilled. In his Tokyo Takes newsletter, Emanuel criticized the “big five” contractors—Lockheed Martin, Raytheon, General Dynamics, Boeing, and Northrop Grumman—and emphasized the need to revitalize America’s “atrophied defense industrial base” to counter China’s growing ambitions. He advocated for greater inclusion of startups and small firms in defense contracts to enhance competition and innovation. Emanuel also stressed the importance of “economic statecraft,” proposing strategic use of U.S. energy resources to counter China while reinforcing partnerships in the Indo-Pacific. Maintaining alliances such as the Quad and U.S.-Japan-South Korea agreements remains central to deterring China and fulfilling global commitments, particularly amid resource strains from supporting Ukraine and Israel.
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