Rebuilding the Arsenal of Democracy: The U.S. and Chinese Defense Industrial Bases in an Era of Great Power Competition

China's defense industrial base is operating on a wartime footing, while the U.S. defense industrial base is largely operating on a peacetime footing. Overall, the U.S. defense industrial ecosystem lacks the capacity, responsiveness, flexibility, and surge capability to meet the U.S. military's production and warfighting needs. Unless there are urgent changes, the United States risks weakening deterrence and undermining its wartime capabilities. China is heavily investing in munitions and acquir