China competition looms large in 2027 US defence bill

China competition looms large in 2027 US defence bill Congress remains deeply divided over the latest US defence bill, yet lawmakers from both parties agree on one key point: the growing strategic challenge posed by China. The National Defence Authorisation Act (NDAA), which outlines US defence policy and authorises military spending annually, includes a broad bipartisan agreement to intensify Washington's military, technological and economic rivalry with Beijing. This focus on countering China has become central to the legislative process, shaping the priorities of both the House and Senate as they draft the fiscal year 2027 version of the bill. Both chambers have introduced separate proposals, each containing new measures aimed at enhancing US capabilities to counter China. These include expanded efforts to support Taiwan, strengthen artificial intelligence research, secure defence supply chains and prepare for potential tensions in the South China Sea. Despite these shared goals, the House and Senate versions of the bill differ on several provisions, reflecting ongoing debates within each chamber. The House has already passed its version of the NDAA, while the Senate continues to work through its own proposal ahead of the August recess. Once both chambers complete their drafts, they will need to reconcile their differences before submitting the final legislation to President Donald Trump for approval. Experts suggest this year’s bill follows a familiar pattern seen in previous iterations, but with added emphasis on specific areas of concern related to China. New provisions target defence procurement, supply chain security, artificial intelligence development, industrial policy and economic security, all framed as essential components of a broader strategy to counter Beijing’s influence. Bonnie Glaser, managing director of the German Marshall Fund’s Indo-Pacific programme, noted that the NDAA has increasingly served as a tool to build resilience against China while reinforcing defence partnerships with allies and regional partners. The bill’s focus on China comes amid heightened geopolitical tensions, including disputes over trade practices, technology transfer and military activities in the South China Sea. Lawmakers argue that maintaining a competitive edge in these domains is critical to ensuring US global leadership. The inclusion of AI and supply chain security measures underscores concerns over China’s rapid advancements in emerging technologies and its ability to disrupt Western industries. These provisions aim to ensure the United States can maintain technological superiority and protect its economic interests from perceived threats. The Senate’s struggle to pass its version of the bill highlights the challenges of achieving consensus on such a complex piece of legislation. While the House has moved forward with its plan, the Senate faces internal pressures from different factions, some of which prioritize domestic issues over foreign policy. Nevertheless, the overarching theme of China competition persists, with both chambers agreeing on the necessity of addressing Beijing’s rising influence. As negotiations continue, the final shape of the bill will likely reflect compromises made during the reconciliation phase, balancing competing priorities while maintaining the core objective of strengthening US capacity to compete with China. With the deadline approaching for the August recess, the pace of legislative activity is expected to accelerate. If the bill passes, it will mark another step in the long-term effort to align US defence strategy with the evolving threat landscape. The outcome will depend on how effectively lawmakers navigate the remaining hurdles, ensuring the final legislation addresses the multifaceted nature of the competition with China. The next major test will come once the bill reaches President Trump’s desk, where he will decide whether to sign it into law.