Number of Foreign Companies Within Defense Supply Chain Grew Over Past Decade, Report Says

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A new report detailing a heavy – and increasing – dependency on goods and services from foreign countries such as China shows that transitioning to more domestic defense production may be easier said than done. The share of foreign-based companies in the supply chain grew the most in the packaged software and IT services between 2010 and 2019, rising from 3 percent to 7 percent.

Section 889 (a)(1)(b) of the 2019 NDAA was supposed to ban agencies from contracting with companies that do business with Huawei, ZTE, and other Chinese firms. But the Pentagon reportedly received a temporary waiver from the Director of National Intelligence, until September 30.

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