This bill allows the U.S. Navy to construct vessels in foreign shipyards under specific conditions, including location in NATO or a mutual defense treaty country, lower costs than U.S. shipyards, and certification that the shipyard isn't owned or operated by a Chinese company.
Mike Lee
Senator
UT
The Ensuring Naval Readiness Act allows the U.S. Navy to construct vessels in foreign shipyards under specific conditions to potentially reduce costs and enhance readiness. Construction in foreign shipyards is permitted only if they are located in a NATO member country or a country in the Indo-Pacific Region with a mutual defense treaty with the U.S., and if the construction cost is less than in a U.S. shipyard. The Act requires certification that the foreign shipyard is not owned or operated by a Chinese company or a multinational company based in China.
Navy Could Build Ships Overseas to Cut Costs, But There's a Catch
The "Ensuring Naval Readiness Act" aims to give the Navy more flexibility in where it builds ships. Here's the deal: the Navy could build ships in foreign shipyards, but only under specific conditions. This new approach is all about cutting costs and potentially speeding up construction.
Breaking Down the Shipyard Shift
This act amends Section 8679 of title 10, United States Code, which usually says "no way" to building Navy ships outside the US. Now, there's a big "if." The Navy can build in foreign shipyards if:
- Location, Location, Location: The shipyard is in a NATO country or a nation in the Indo-Pacific that has a mutual defense treaty with the U.S. Think allies like the UK, Japan, or South Korea.
- Price Tag Matters: It has to be cheaper to build there than in a U.S. shipyard. Section 2 outlines this.
- No Chinese Connection: The Secretary of the Navy has to personally certify to Congress that the foreign shipyard has zero ties to Chinese companies or the Chinese government. This is directly stated in the updated Section 8679.
Real-World Ripples
Imagine a U.S. Navy needing a new destroyer. Usually, it's built in a place like Maine or Mississippi. Under this act, if it's cheaper to build that same destroyer in, say, South Korea (which has a mutual defense treaty with the US), and the shipyard passes the China check, the Navy could go for it. This could mean a quicker build and save taxpayer dollars. For example, if a ship costs $1 billion to build in the US but only $800 million in South Korea, that's a $200 million difference that could go to other defense priorities—or even back into the economy.
But here's where it gets tricky. What about American shipbuilders? Fewer contracts could mean job losses or reduced work hours for welders, electricians, and engineers in U.S. shipyards. The bill doesn't directly address these potential impacts. Also, while the act tries to keep China out of the picture, verifying that a foreign shipyard is truly independent might be tough in practice. Multinational companies can have complex ownership structures, making it hard to trace every connection.
The Big Picture
This act is trying to balance two big things: keeping the Navy strong and spending taxpayer money wisely. The idea is to leverage international partnerships to potentially save money and get ships built faster, but the bill doesn't provide any solutions for the domestic shipbuilding industry that may face significant challenges. It also highlights the ongoing tension between national security (keeping shipbuilding domestic) and economic efficiency (finding the best deal). The "Ensuring Naval Readiness Act" essentially asks: how much are we willing to rely on allies for something as crucial as our naval fleet?