Austin: Allies, innovation key to US competition with China

Defense Secretary Lloyd Austin says the Pentagon intends to work better with private industry to develop high-tech systems and to strengthen relations with allies in the Indo-Pacific region in order to maintain a competitive edge over China,

WASHINGTON -- The Pentagon intends to work better with private industry to develop high-tech systems and to strengthen relations with allies in the Indo-Pacific region in order to maintain a competitive edge over China, Defense Secretary Lloyd Austin said Saturday.

Speaking at the Reagan National Defense Forum in California, Austin said recent military activity and aggressive moves by China in the region, including near the self-ruled island of Taiwan, are disturbing. And while he said the U.S. is still committed to the longstanding “One China” policy, it is working to bolster Taiwan's ability to defend itself.

“We’re clear eyed about the challenge that China presents. But China is not 10 feet tall. This is America,” said Austin. “America isn’t a country that fears competition. And we’re going to beat this one with confidence and resolve and not panic and pessimism."

Austin’s speech comes as the U.S. struggles to counter China's growing military and economic power, and its advancements in space, cyber and nuclear capabilities, while also avoiding direct conflict. Tensions between the two nations have spiked as China has dispatched an increasing number of fighter jets toward Taiwan, fueling worries about a possible invasion, even as the U.S. and its allies sail warships though the Taiwan Strait.