Aerospace Industries Association (AIA) President and CEO Eric Fanning submitted testimony for the December 5 House Select Committee on the Chinese Communist Party's hearing titled "Rebuilding the Arsenal of Democracy: The Imperative to Strengthen America’s Defense Industrial Base." The hearing focused on the competition between the United States and China, as tensions rise and logistics in the Indo-Pacific become more contested.

In his written testimony, Fanning emphasized the significance of the defense industrial base in maintaining U.S. competitiveness over China. He proposed policy solutions to enhance this strategic asset's resilience. Fanning noted that "well-meaning but burdensome statutes and government policies drive up the cost and complexities of doing business with the federal government," leading some companies to shift away from defense contracts in favor of commercial industries.

Fanning urged Congress to streamline regulations, encourage new entrants, and support companies throughout the supply chain. He highlighted China's aggressive investment in military innovation and called for restoring competitive R&D tax amortization rules to strengthen U.S. global R&D posture.

He also pointed out that U.S. foreign and trade policy could bolster the defense industrial base's health by easing regulatory burdens that inhibit cooperation with allies and strengthening domestic manufacturing. "Easing technology transfer requirements and promoting seamless integration of U.S. and allied industrial bases" are essential for deterring adversaries, according to Fanning.

Facing China's significant investments in its defense industrial base, Fanning urged Congress to send clear demand signals through regular government funding processes. He stated that addressing threats requires focused changes in federal policy amid debates over defense budget cuts, supply chain disruptions, and material shortages.

Fanning's full testimony is available for further reading.