Opinion: What’s In A Defense Budget Cut?

On the same subject

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  November 13, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Britain moves to protect its defense industry from foreign influence

  By: Andrew Chuter LONDON – Defense and space industries are among nearly twenty sectors named by the British government in the introduction of new legislation Nov. 11 aimed at tightening regulations allowing it to block potentially hostile direct foreign investment. The government said the National Security and Investment Bill will strengthen its ability to investigate and intervene in mergers, acquisitions and other types of deals potentially posing a threat to British national security. Artificial intelligence, robotics, military or dual-use technologies, satellite and space technologies, defense and critical suppliers to the government were among 17 industry sectors included in the new legislation. The new powers allow the government to act against investors from any country, including the United States. “Under the National Security and Investment Bill, the government will be taking a targeted, proportionate approach to ensure it can scrutinize, impose conditions on or, as a last resort, block a deal in any sector where there is an unacceptable risk to national security,” said the Department for Business, Energy and Industrial strategy in a statement. The acquisition of sensitive assets and intellectual property, as well as the acquisition of companies is covered by the legislation. The government said the move brings British legislation into the 21st century. Reporting of deals in the sectors covered by the legislation will be mandatory and companies could face heavy fines and the transactions made void if they fail to get approval from the Business department. Britain's effort to shut the door on unwelcome investors like the Chinese is part of a growing trend among Western nations. Earlier this year the United States introduced mandatory notification requirements for transactions concerning specified types of businesses as part of a broader program of reform. The Australian government have also introduced legislation requiring foreign investors to seek approval to acquire a direct interest in sensitive national security businesses. The powers pending before parliament are similar to those already in place with allies like France, Germany and Italy, said the government. Paul Everitt , the chief executive of the defense, aerospace and security lobby group ADS, welcomed the move but said it was important the government didn't deter overseas investors. “The government's plans must strike an appropriate balance between putting protections in place and continuing to ensure the UK remains an attractive environment for international investment,” said Everitt. Consultant Howard Wheeldon, of Wheeldon Strategic Advisory, also supported the government action, but he cautioned: “Does it [the legislation] have sufficient teeth? We certainly need to protect our specialist industry but we must also ensure and expect the playing field to be kept level.” https://www.defensenews.com/global/europe/2020/11/12/britain-moves-to-protect-its-defense-industry-from-foreign-influence/

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  July 4, 2024 | International, Land

  Russian armour-piercing tank rounds to be made in India, Rostec says

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  June 11, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Pakistan’s private industry clashes with government over regulations

  By: Usman Ansari ISLAMABAD — The Pakistani government's restrictions on the defense industry are stifling potential and must go, according to the president of the trade body Pakistan Aerospace Council. PAeC is a collective of aerospace, defense and high-tech electronics enterprises that aims to internationally raise the profile of Pakistani industry. Its leader, Haroon Qureshi, heads the defense engineering and electronics company East West Infiniti. In a June 3 post on the PAeC website, Qureshi said Pakistan's private, high-tech manufacturers have the potential to help establish a more ambitious local aviation industry by acting as suppliers to and manufacturers of components and systems used by Western counterparts. However, this is hampered by government restrictions that demand permission prior to even design work. Without these restrictions, Qureshi believes the private sector could “leap-frog, especially with electronics of the future.” Citing the success of private space companies in the United States, Qureshi said if the Pakistani government frees the high-tech private sector to “innovate and do what the private industry thinks is feasible and viable,” those businesses would not use public funds and probably generate income for the government through taxes. In response to PAeC's comments, the Ministry of Defence Production told Defense News the government recognizes and actively promotes the importance of “indigenization and cooperation between the private sector and the defense-related industry.” However, it denied there are stifling constraints on the private sector, saying the market meets both domestic and export demand, but because of “international obligations/treaties, especially the measures taken to counter terrorism, certain limitations have to be observed.” Nevertheless, the ministry added, “measures are under deliberation to further facilitate the private sector in forthcoming defense production policy,” including the creation of a unit for so-called one-window operations — an approach meant to shorten the lengthy bureaucratic process. It also cited recent supplier and vendors exhibitions as well as a defense production seminar to promote cooperation among private businesses. The government is also preparing a “Defence Offset Policy" to encourage the private sector to absorb the “latest defense and dual-purpose technologies,” the ministry said. But author, analyst and former Australian defense attache to Islamabad Brian Cloughley said Qureshi's concern has existed for years, and the government's regulations are driven by security fears. “Whenever private industry wants to get involved in any aspect of defense production, the security people and bureaucrats in the defense system roll out objections, based mainly on the possibility of leakage of technical information and thus jeopardy of ‘national security,' ” he said. “It's been a real headache, and I continue to be surprised that the private sector has continued its efforts for so long.” Despite the government's efforts, Shehzad Ahmed Mir, managing director of the private defense company Bow Systems, remains unconvinced. “While MoDP lives in a self-pleasing, make-believe cocoon devoid of market realities, similar companies created much later in the West are literally thriving financially and technologically today simply because their respective governments gave them subsidies, export incentives, financial support, etc., compared to our government that drowns their ambitions in [no objection certificates], taxation whirlpools, bureaucratic hurdles, etc.,” he said. “So by the time — and if at all — MoDP comes out with any good news for the private sector, there won't be anyone credible around to jubilate on it.” https://www.defensenews.com/global/asia-pacific/2020/06/10/pakistans-private-industry-clashes-with-government-over-regulations/