China has sanctioned the leaders of top U.S. business and technology companies. The punitive measures are a response to a recent U.S. arms sale to Taiwan. But they are also a badge of honor. To compete with China, the United States needs captains of industry who are both innovative and patriotic.
On Dec. 26, China imposed sanctions against 20 U.S. defense-related companies and 10 executives. Boeing, Northrop Grumman, and L3 Harris were among the corporations sanctioned. Anduril Industries and its founder, Palmer Luckey also made the list. China’s announcement came on the heels of a proposed U.S. arms sale package to Taiwan that is valued at more than $10 billion. China’s Foreign Ministry linked the sanctions to the arms sale: “We stress once again that the Taiwan question is at the very core of China’s core interests and the first red line that must not be crossed in China-U.S. relations,” the Ministry declared. “Any company or individual who engages in arms sales to Taiwan will pay the price for the wrongdoing,” it added threateningly.
China has long coveted the sovereign country of Taiwan. Chinese Communist Party (CCP) leader Xi Jinping has instructed his country’s armed forces to be prepared to seize the island nation by 2027.
Undeterred, Luckey called the sanctions a “Christmas gift.” The Anduril founder took the news in stride, saying that “it means so much to finally have my non-existent Chinese assets seized and repurposed. The sanctions also prohibit all Chinese nationals from engaging with me in any way, which should really clear up my social media feeds.” Both Luckey’s humor and his intent are praiseworthy. For too long, other American business leaders have taken a different approach.
For years, many Western corporations have been reluctant to offend China, worrying that it would hurt their bottom line. Since the dawn of the U.S.-China relationship, Americans have sought access to China’s vast and seemingly unlimited marketspace. The CCP has exploited this desire while stealing U.S. intellectual property and key technology. Both accidentally and intentionally, many U.S. companies have been feeding the war machine of our chief opponent.
By contrast, U.S. business leaders were essential to winning the last major great power war. As the historian Arthur Herman documented in his book Freedom’s Forge, business executives like William Knudsen and Henry Kaiser were key to building the famous “Arsenal of Democracy” that won World War II. These were men who used their talents and experience to defeat Nazi Germany and Imperial Japan. They recognized that industrial power is key to winning wars and reshaped American industry accordingly, fighting both red tape and bureaucrats in the process.
Unfortunately, when it comes to China, some U.S.-based companies have been more short-sighted, often putting quarterly profits before patriotism. However, Anduril and others have recognized the tremendous threat posed by China, a country whose economic and military power exceeds previous foes.
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The United States must “launch a new Golden Age of defense production,” Luckey warned. And it must lead on defense innovation, including AI, or else “the world’s dominant power will no longer be a democracy.” Winning will be no easy task. And if history is an indicator it will require forward thinking and patriotic business leaders and innovators. The costs of complacency are too high.
As the famed World War II General Omar Bradley famously remarked: “in war there is no prize for the runner-up.”
The writer is a Washington, D.C.-based foreign affairs analyst. His views are his own.