In his first weeks in office, President Donald Trump has made clear his intention to reenergise the US defence industrial base. A new report from the United States Studies Centre (USSC) at the University of Sydney asserts that US alliances and partnerships should be – and already are – at the centre of these efforts, showing that defence industrial and technology cooperation is already at the heart US alliance modernisation efforts with key Indo-Pacific countries.

In Federation is deterrence: The US defence industrial and technology integration agenda in the Indo-Pacific, report authors USSC Research Fellow Tom Corben and USSC Non-Resident Fellow Sophie Mayo assess the imperative for regional defence industrial integration to shore-up the foundations of American power and to better deter China.

“US defence production was set back significantly by COVID and wars in Ukraine and the Middle East, while China has continued building their capability at a rapid pace,” USSC Director of Foreign Policy and Defence Prof. Peter Dean notes, “the most efficient and effective way to counteract this will be through modernising US alliances with Indo-Pacific allies to increase integration across defence production and technology.”

The report looks at the historical and contemporary drivers that led to the production shortfalls, and then explores recent industrial integration efforts with key US allies and partners in Asia: Australia, India, Japan, the Republic of Korea and Taiwan. It then analyses several major obstacles to further cooperation, before offering a number of pathways forward, including reforms to export controls and information sharing.

“President Trump’s emphasis on defence industrial renewal, cutting red tape, and burden-sharing with allies and partners is a clear opportunity to ensure that America’s Indo-Pacific alliances are fit for purpose,” Prof. Dean argues.

He concludes, “Whether you’re looking at it from a standpoint of efficiency or efficacy, doubling down on an already robust defence industry and technology integration agenda offers a win-win for the United States and its regional partners.”

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Policy recommendations for the United States and its allies

  1. Explore the potential for collective defence industrial wargaming scenarios that simulate attacks on collective production and sustainment capacity at the same time as conventional hostilities.
  2. Establish or revitalise collective mechanisms to coordinate and harmonise defence industrial security reforms across different partnerships.
  3. Design future INDUS-X or AUKUS-like initiatives around enhanced information sharing and industry engagement practices, with an emphasis on delivery before expansion.
  4. Strengthen defence industrial ‘domain awareness’ with key regional allies through greater threat-sharing, counter-intelligence cooperation, and supply chain visibility.
  5. Factor the needs and potential contributions of allies into the Pentagon’s impending acquisition and innovation reform spree.
  6. Further streamline export controls and associated policy frameworks for Indo-Pacific allies and partners.