Congress Needs to Fix Navy Posture Statements

By Bruce B. Stubbs

The Problem

Every year the Chief of Naval Operations (CNO) submits a posture statement to Congress. It is the Navy’s principal annual self-assessment, the one document in which the service’s senior uniformed officer reports, over a personal signature, on readiness, force structure, and strategic requirements. For the congressional committees charged with raising and maintaining a Navy, it is among the most important pieces of evidence they receive, because it is the Navy’s official account of its own condition.

It is also almost entirely unconstrained. No statute dictates what a posture statement must contain, what form it must take, or what baseline should be used to evaluate it. What the document emphasizes or omits, and how it frames what remains is shaped, as we will see, not by the Navy alone but by several powerful players with competing agendas, none of whom holds the pen entirely. The result is not a standardized assessment but an annual narrative, its register set less by the requirements of oversight than by the incentives of advocacy and different agendas.

This is a peculiar gap, and it has nothing to do with the character of any individual CNO. Even if every CNO communicated in perfect good faith, an unconstrained annual narrative would still be a poor instrument of oversight, because oversight depends on structure, continuity, and comparability that no single year’s narrative can supply. Congress has long understood this everywhere else in its dealings with the Navy, and has imposed that structure by law on shipbuilding, acquisition, and fleet-requirement reporting. The posture statement is the conspicuous exception. This essay argues that Congress should impose the same reporting discipline upon the posture statement that it already applies to other required Navy reporting, by legislating its format.

The Evidence: Thirty-Five Years of Warning Without Consequence

A review of Navy posture statements from 1991 through 2026 reveals a consistent and durable pattern. In almost every year the statement paired a warning, whether shrinking force structure, deferred maintenance, an aging fleet, industrial-base erosion, manpower shortfalls, or rising operational risk, with a reassurance that the Navy remained ready and capable of meeting its commitments. The warning was usually present. Rarely, however, was it allowed to stand alone long enough to alarm.

Read one at a time, each statement seemed reasonable. Read in sequence, the pattern becomes unmistakable, and it runs in three movements. First the warning, naming a real and worsening condition. Then the reassurance, set in the same passage, affirming present readiness. Then, year after year, normalization set in, as a deficiency acknowledged every cycle without consequence stopped reading as a deficiency at all and became a feature of the landscape. Repetition without consequence is the mechanism. A problem reported annually, and annually absorbed, ceases to look like a problem.

The pairing is visible in the CNOs’ own words. In 2006, CNO Michael Mullen told Congress that the fleet “stands at 281 ships—not enough in my view,” then assured the committee in the same breath that the Navy’s plan “centered on 11 aircraft carriers with a fleet of about 313 ships, affordably meets these needs.”1 In 2014, CNO Jonathan Greenert warned that under Budget Control Act caps the Navy “would be unable to execute at least 4 of the 10 primary missions,” even as he testified that the budget “delivers sufficient readiness to meet our GFMAP [Global Force Management Allocation Plan] presence commitments and provide sufficient ‘surge’ capacity for contingency response.”2 Each warning was real, but neither was allowed to stand without the reassurance that blunted it.

A recurring weakness in many posture statements was the tendency to describe conditions rather than consequences. The statements might warn that: fleet size was insufficient; maintenance was deferred; readiness was declining; or industrial capacity was strained. While these were important warnings, they often stopped short of explaining what would happen if the deficiencies remained unaddressed. The language of “risk” was frequently used, yet the specific operational, strategic, fiscal, or human consequences of that risk were not always clearly articulated. A reader of three decades of these documents is left to ask the question every congressional staffer eventually asks of a vague brief. So what? Unsustainable when? Which mission fails? Which ship does not deploy? The statements seldom were answered. A warning that never states its consequence cannot compel action, because it never tells anyone what they stand to lose by waiting. The problem was not that Congress lacked warnings. It was that the warnings rarely matured into explicit statements of what the nation would lose if they were ignored. As a result, Congress was often informed of problems without receiving a corresponding assessment of the consequences of inaction.

This was not for lack of information. Over the same decades a separate body of evidence stated the problems and consequences plainly. The 2010 Balisle Fleet Review Panel concluded that cumulative decisions made over the preceding decade had produced a measurable decline in material readiness across the surface force, and traced the fall to 2000.3 The Center for Naval Analyses (CNA) was blunter still, concluding in its 2010 Tipping Point study that “when you are no longer present in one or two areas of vital national interest with dominant maritime forces, you are at the ‘tipping point.'”4 CNA’s warning extended beyond the immediate moment. It concluded that absent corrective action the Navy would “continue to leak capabilities and capacity throughout the next two decades.” The Navy’s Board of Inspection and Survey (INSURV) recorded falling material-condition scores year after year.5 The Government Accountability Office (GAO) counted the cost in hard numbers, including 10,363 days of attack-submarine idle time and maintenance delay between 2008 and 2018.6 The contrast between posture statement warnings and these reviews is the point, because each of these reviews named a consequence and attributed it to a cause. The same conditions that presented as alarms in an audit read as manageable challenges in the posture statement.

That cost came due in the summer of 2017, when the separate collisions of USS Fitzgerald (DDG-62) and USS John S. McCain (DDG-56) in the western Pacific killed seventeen sailors. Much of official Washington reacted as though the Navy’s readiness problems had appeared out of nowhere, but the Washington policy world had got it wrong. The problems had been documented for years, in some cases for decades, as two internal authoritative post-collision Navy reviews underscored. The Strategic Readiness Review concluded that the accidents reflected broad institutional and readiness failures that had accumulated over years, not isolated mistakes.7 The Comprehensive Review reached a similar conclusion. It found that “the risks that were taken in the Western Pacific accumulated over time, and did so insidiously,” and that the operating environment had become normalized to the point that sailors and headquarters staffs could no longer recognize that the processes used to identify, communicate, and assess readiness were failing.8

These external and internal reviews generally stated consequences more directly and concretely than the Navy’s annual posture statements. They described readiness systems breaking down, training standards atrophying, maintenance being deferred, risk accumulating, and capacity becoming unsustainable. It was the Navy’s own senior leaders, in the end, that documented those consequences more explicitly and forcefully than its annual posture statements had. The issue was not the absence of warning which were common and occasionally stark. The problem was that their implications were often underdeveloped and that they were frequently paired with reassurances that the Navy remained ready and capable of meeting its commitments.

The interesting question, then, is not whether warning existed. It is why warning, and by extension risk, became normalized. The harder questions are why the Navy’s own signed account of its condition so rarely stated the consequences that would have made the warning impossible to defer, and why the oversight system built to catch such a decline did not. Part of the answer lies in what the posture statement was asked to do, and in the process it was meant to serve.

Why It Happened: A Document Serving Many Masters

Over time, posture statements evolved from relatively straightforward professional assessments into hybrid documents that simultaneously served oversight, budgetary, political, institutional, and strategic-communication purposes. Warnings were embedded within a narrative that simultaneously described the Navy’s current condition, the future force readiness, and assurances of continued mission execution. The narrative tended to blur the distinction between the Navy’s current posture, the future force envisioned under the forthcoming President’s Budget, and the consequences of continued fiscal constraint. The result was not an absence of warning. It was a warning embedded within a narrative that simultaneously assessed current readiness, advocated for future resources, projected future capability, and reassured Congress that mission execution remained possible. This pattern persisted across the post–Cold War era under successive administrations and CNOs, which is the first clue that its source is structural rather than personal. A document produced by that many different people, under that many different Presidents, in that consistent a form, is not expressing anyone’s individual choice. It is expressing the incentives of the system that produces it.

Those incentives pull in different directions, because the posture statement is expected to serve several masters at once. The Secretary of the Navy, (SECNAV), through the Secretary of Defense, answers to the President, and no administration wants its officials telling Congress that the President’s budget is inadequate or the service is heading toward trouble. That induces an incentive toward reassurance. Congress is not one audience but many, with the majority often inclined to support the administration and the minority more inclined to expose its shortfalls. And the Navy itself wants resources without inviting the detailed direction that every admission of weakness can provoke. This concern is evidenced by the steady growth of the National Defense Authorization Act from roughly 20 pages in the early 1960s to “more than 3,000 pages” for FY2026, becoming an ever more prescriptive document.9 Nor are members of Congress immune from incentives of their own, often attending more closely to the shipyards, bases, programs, and jobs in their districts than to the aggregate condition of the fleet, which makes a clear, standardized account of that aggregate condition all the more necessary.

Combine all those pressures and the posture statement emerges as a negotiated document, not negotiated line by line, but in a way that accommodates various institutional preferences. The administration wants reassurance, the two parties in Congress want material that serves their differing aims, and the Navy wants resources without micromanagement. The warning satisfies the Navy’s need to signal requirements; the reassurance satisfies the administration’s need to demonstrate competence; the ambiguity holds detailed intervention at bay. The warning-and-reassurance pattern is the natural product of those crosscurrents. It is, in the end, a compromise document, and a compromise document makes a poor instrument of oversight, because the very ambiguity that lets it satisfy everyone is what drains it of the consequence, continuity, and comparability that oversight requires. Indeed, these annual documents are so compromised that retired Army Lieutenant General Thomas Spoehr observed that posture hearings have “largely devolved into ‘information-free’ events.”10

Congress Already Knows How to Fix This

If this problem were unique to posture statements, reform might be difficult. In fact, Congress has confronted similar reporting failures repeatedly and has developed a consistent solution. The reform this essay proposes is not novel. It advocates that the rule Congress already follows in all other dealings with the Navy be applied at last to the one document that has escaped it. Again and again, when Congress found executive-branch self-reporting too optimistic, too inconsistent, or too vague to support oversight, it has responded the same way, not by asking the service to do better, but by legislating what the report must contain.

The pattern began with acquisition. Dissatisfied with rosy program reporting, Congress created the Selected Acquisition Reports11 and, through the Nunn-McCurdy provisions, required formal notification and justification whenever a program breached defined cost thresholds.12 The intent was not to manage programs from Capitol Hill but to force a standardized, comparable account that optimism could not soften.

Congress extended the same logic to force planning, though with an instructive limit. Under 10 U.S.C. § 231, the Secretary of the Navy must submit with the budget an annual 30-Year Shipbuilding Plan, carrying the views of the CNO and the Marine Corps Commandant, along with a certification that the budget actually funds it. The plan does useful work.13 It lays out a procurement timeline that lets the shipbuilding industry plan, budget, and prepare, and it lets Congress see the Navy operating with intent toward a stated force-level goal. But its purpose is narrow. It is, in effect, a funded-or-not construction schedule, valuable for industrial coordination and budget markup, and largely silent on readiness, maintenance, risk, and consequence. It can show how many ships the Navy wants, and by when, but it was never built to justify a larger fleet, to explain the failure to reach one, or to connect the fleet’s condition to the stakes of inaction. The record bears out that narrowness. The plan has been submitted faithfully every year since 2003, yet in March 2025 the GAO reported that the Navy has no more ships today than when it issued that first plan, despite a near-doubling of its shipbuilding budget over the same two decades.14 The plan recorded the intent and the timeline; it neither caused that stagnation nor was equipped to arrest it. That is the lesson for posture-statement reform. A report is only as useful as the substance Congress requires it to contain, and a timeline of intentions is not the same as an instrument of oversight.

Congress has shown it can do exactly that. There are three prime examples of statutory reports mandated by Congress primarily because Congress could not get the information it required for effective oversight of the Navy and the other armed services.  These reports are the Battle Force Ship Assessment and Requirement (BFSAR), the Annual Long-Range Plan for Construction of Naval Vessels, and the Annual Aviation Inventory and Funding Plan.15 In each report Congress did three things it has never done for the annual posture statement. It named the official who signs and submits the report, it set a deadline or triggering event, and it prescribed the specific content the report must contain. No comparable statute governs the posture statement. The precedent to mandate its originator, format, and contents is well established. (See Table 1.)

Table 1: Statutory Precedents for a Congressionally Mandated Navy Report

Report

Statute Originator (signs and submits) Purpose

Major Data and Information Elements Required

Annual Aviation Inventory and Funding Plan

Current form: Annual Aircraft Procurement Plan and Aircraft Inventory Report

10 U.S.C. § 231a16

Annual plan and certification, submitted not later than 30 days after the President’s budget.

Secretary of Defense

Submits the plan and signs the certification.

Show whether the budget funds the aircraft needed to sustain the aviation force structure the national military strategy requires, and disclose the risk if it does not. •   A 15-year procurement program for fighter, attack, bomber, lift, and ISR aircraft

•   The aviation force structure required by the national military strategy

•   Estimated annual investment funding for each program

•   Estimated annual life-cycle operating and support funding

•   An annual aircraft inventory by type, model, and series

•   A certification that the budget funds the plan, with a shortfall and risk assessment if it does not

Battle Force Ship Assessment and Requirement (BFSAR) 10 U.S.C. § 869517

Submitted not later than 180 days after a covered event (a change in strategic guidance, laydown, operating concepts, or missions).

Chief of Naval Operations

Submits to the congressional defense committees.

Establish and update the battle force ship requirement, the force-level goal and mix the fleet must reach to meet strategy and combatant-commander demand. •   A review of the federal, DoD, and Navy strategic guidance the force must follow

•   The steady-state demand for maritime security and security force assistance

•   The force options that meet combatant-commander theater campaign plan demands

•   A force optimization analysis of the day-to-day global posture required

•   Amphibious warfare and Marine-lift requirements set by the Commandant of the Marine Corps

Annual Long-Range Plan for Construction of Naval Vessels

The 30-Year Shipbuilding Plan

10 U.S.C. § 23118

Annual plan and certification, submitted with the President’s budget.

Secretary of the Navy

Submits and signs plan, which carries the unaltered assessment of Chief of Naval Operations and Commandant of the Marine Corps. Secretary of Defense certifies funding adequacy.

Present the 30-year plan to build, maintain, and modernize the battle force, and certify whether the budget funds it. •   A 30-year construction program by fiscal year, ship type, and quantity

•   The battle force inventory the plan would produce

•   The estimated annual construction cost and the basis for it

•   The estimated funding to operate, maintain, and modernize the force

•   The unaltered assessment of the Chief of Naval Operations and the Commandant of the Marine Corps

•   A certification that the budget funds the plan, with risk if it does not

For illustrative purposes, the Battle Force Ship Assessment and Requirement (BFSAR) report, codified at 10 U.S.C. § 8695, does not solicit input from the Secretary or the administration. It directs the CNO, by name, to submit to the congressional defense committees an assessment of the fleet the Navy requires. And Congress did not merely ask for a number. It specified the contents, a review of strategic guidance, an analysis of steady-state demand, modeling of the Navy’s ability to fight and win approved scenarios, and based on all of that, the required number and posture of each class of ship, projected across five, ten, fifteen, twenty, twenty-five, and thirty years. The detail was the point, because Congress had learned that left to define the report’s contents itself, the Navy would not reliably say how many ships it needed, or why. The reports bear this out. The first, in 2022, set the requirement at 373 ships;19 the second, in 2023, at 381.20 The number moved, but for the first time Congress could see, in a specified form, the reasoning behind it.

The BFSAR also exposes the limit of what format reform can promise, and the objection deserves a direct answer. That assessment did everything this essay advocates. It was mandated in detail, signed by the CNO, and specific to the ship. It set the requirement at 381. And it changed almost nothing: no administration funded it, and the battle force still sits below 300. A skeptic may fairly ask why mandating the posture statement’s format would fare any better. The answer is that legislating format compels accounting, not appropriations, and such distinction is the point rather than a concession. A mandated format cannot force Congress to buy ships. What it can do is strip the Navy of the ability to let a warning quietly disappear, to state a requirement one year and fall silent the next, to name a problem and never report what became of it. That is the specific failure this essay diagnoses, and it is the failure a disciplined format would cure. Accountability is not the same as appropriation, but it is the precondition for it.

Alongside these mandated self-reports, Congress built a second layer of defense, independent analysis. The Congressional Budget Office (CBO) scores the Navy’s shipbuilding plans against its own cost models. The GAO audits acquisition and maintenance. The Congressional Research Service (CRS) supplies standing expert analysis to the committees. Congress created these institutions precisely because it understood that agencies are poor judges of their own performance. The purpose was not to eliminate agency expertise but to ensure that congressional oversight did not depend exclusively upon it. The Navy is a documented case in point, and the most telling testimony comes not from a critic but from Congress’s own analyst. CRS naval analyst Ronald O’Rourke has observed that the incentive toward optimistic Navy cost estimates is so strong that it has become, in his words, “almost standard operating procedure.”21 That is not an accusation of dishonesty. It is a description of exactly the institutional optimism this essay has traced in the posture statements, identified independently, in another reporting stream, by the very office Congress created to check it.

The conclusion writes itself. Across acquisition, shipbuilding, fleet requirements, and budget analysis, Congress has already decided that it cannot rely on unstructured Navy self-assessment, and it has imposed structure by law in every one of them. The posture statement is the lone holdout, the one major annual account of the Navy’s condition that Congress still receives as whatever narrative the Navy chooses to write. There is no principled reason for the exception.

The question is no longer academic. The Navy faces a fleet below the size its own strategy demands and which is still shrinking, submarine-maintenance delays measured in years, a strained shipbuilding and repair base, munitions shortfalls, aging infrastructure, and an adversary in China that numerically “has the largest navy in the world.”22 In the coming decade Congress will be asked to make consequential decisions about force structure and resources, very likely involving the largest naval buildup since the 1980s. Those decisions require a reporting instrument capable of connecting conditions to consequences and preserving institutional memory across administrations. The posture statement, as currently written, is not that instrument.

Caudle’s 2026 posture statement demonstrates that candid discussion of readiness consequences is possible. However, the historical record reviewed here shows substantial variation in how CNOs have presented risk, readiness, and implications. Effective oversight should not depend upon the communication style or priorities of a particular CNO. The purpose of reform is to ensure that Congress receives consistent, comparable, and decision-relevant information regardless of who occupies the office.

A Navy Posture Statement Reform Act

The remedy follows directly from the diagnosis. If the posture statement fails as an oversight instrument because it is an unconstrained narrative, the fix is to constrain it, not by dictating the Navy’s conclusions but by mandating the categories it may not omit, soften, or quietly drop. The aim is to convert an annual advocacy document into an oversight instrument with continuity from one year to the next. The lesson of the 30-Year Shipbuilding Plan must be heeded. The mandate must drive the contents, not merely the calendar. This degree of specificity is neither unusual nor unprecedented. Congress already prescribes detailed content requirements for numerous defense reports, including those governing acquisition, shipbuilding, and force-structure assessments.

A reformed posture statement would fall into three parts as presented in Tables 2, 3, and 4. The current-year assessment in Part I would preserve what the Navy already does well and discipline it. It would provide: (1) a short assessment of the current security environment; (2) a ranked list of the service’s ten most serious problems. By design, this is a list of problems, not challenges, with each problem carrying its status, trend, severity, corrective action, and the consequence of leaving it unresolved. By providing this list, the Navy lives its management motto to “Embrace the Red” which, according to ADM Stephen Koehler, U.S. Pacific Fleet Commander, is “Navy speak for embracing problems and adjusting quickly and holistically to fix them” and is a major plank in its “Get Real, Get Better” command philosophy.23 In addition, Part I would address: (3) an assessment of the changing character of war caused by developments in the threat capability, geo-political actions, technology, and warfare concepts, etc.; (4) CNO’s risk assessments; (5) CNO’s personal assessment of the Navy’s current readiness; (6) CNO’s evaluation of the implications and consequences of the navy’s top ten problems and current readiness; (7) the top ten accomplishments of the past year (“Embrace the Green”); and (8) formal acknowledgment and praise of Congressional support. Part I would also include an Annex A to address the status of major programs of record and procurements. In regard to risk, as previously explained, Navy posture statements frequently used that term without specifying the type of risk and not always clearly articulating the consequences of that risk. Congress, consequently, while informed of problems was not exposed to the consequences.

Many posture statements exhibited inconsistent treatment of consequences. Some CNOs articulated them clearly while others described only conditions or generalized risk. Even when consequences were identified, they were often accompanied by reassurances that the Navy would continue meeting its commitments. As a result, Congress was frequently presented with warnings without a standardized assessment of what inaction would mean. Section 6 would address this deficiency by requiring the CNOs to state explicitly the consequences of failing to correct major deficiencies.

Table 2: Major Elements of a Congressionally Mandated Posture Statement—Part I Current Fiscal Year Assessment

The Current Year Assessment Topic

What It Requires

 

1.   Assessment of Current Security Environment Professional judgment through a naval lens.
2.   Assessment of the Top Ten Problems (Embrace the Red) Status, trend, severity, corrective action, and consequence of individual problems.
3.   Assessment of the Changing Character of War What is changing, and what is not.
4.   Risk Assessments Specific current “risk.” to mission, force, strategy, the industrial base, and the nation.
5. Current Readiness Greatest readiness concerns, vulnerabilities, opportunities, and assumptions most likely to prove wrong.
6. Evaluation of Navy’s Top Problems and Current Readiness Strategic implications and national-security consequences for current environment.
7. Top Ten Accomplishments of the Past Year (Embrace the Green) Year’s principal achievements, briefly.
8. Acknowledgment of Congressional Support Enacted authorities and appropriations recognized.
Annex A: Overview of Programs and Procurement (Description and Status) Detailed reference material on major programs.

Part II would focus on and assess the Navy’s future readiness, performance, and environment based on the assumption that Congress will approve the President’s Budget submitted for the next fiscal year. This component of a reformed posture statement would provide: (1) an assessment of the future security environment; (2) strategic planning assumptions; (3) the CNO’s personal assessment of the Navy’s future readiness, given passage of the President’s Budget for the next fiscal year; (4) the CNO’s future risk assessments; (5) on-going and potential future problems; and (6) consequences and implications of these on-going and future problems. As in Part I, Section 6 of Part II requires the CNO to identify, in concrete terms, what will occur if major deficiencies remain unresolved.

Table 3: Major Elements of a Congressionally Mandated Posture Statement—Part II Next (i.e., Future) Fiscal Year Assessment

The Future Year Assessment Topic

What it Requires

1. Assessment of Future Security Environment Professional judgment through a naval lens.
2. Strategic Planning Assumptions Premises on: budget, recruiting, retention, shipbuilding and maintenance capacity, industrial base, operational demand, and threat.
3. Assessment of Navy’s Future Readiness Based on Submitted President’s Budget for next FY Greatest readiness concerns, vulnerabilities, opportunities, and assumptions most likely to prove wrong.
4. Risk Assessments Specific future risk to mission, force, strategy, industrial base, and nation.
5. On-going and Future Key Problems and Future Readiness Problem description, status, trend, severity, and corrective action. Every major external review status (for example, 2010 Balisle Report, GAO Reports, Annual INSURV Reports, the 2017 Strategic and Comprehensive Readiness Reviews, etc.)  kept visible until formally closed. For each major problem, what happens if Congress does nothing, stated concretely. Each problem named in any prior year carried forward with status, trend, and resolution or abandonment, so none can quietly drop off the list.

Part III, would focus on longitudinal assessment, building the institutional memory that posture statements have always lacked. This third component of the reformed posture statement tracks the Navy across time rather than freezing it in a single budget cycle. Section 1 in Part III requires the CNO to track from 1991, at the end of the Cold War, to the present, the condition of the fleet using standardized categories such as force structure, readiness, maintenance, munitions, infrastructure, industrial capacity, and personnel. But describing conditions alone is insufficient. Section 3 requires the CNO to explain the consequences of inaction by identifying the operational, strategic, and fiscal risks that will result if these longitudinal deficiencies are not addressed. In addition, Section 3 requires those warnings and risks to be tracked from year to year until resolved, preventing them from disappearing into successive posture statements. This reporting requirement transforms warnings from isolated observations into potentially enduring Congressional oversight items. It compels the articulation of consequences and thus provides continuity and accountability to eliminate a central weakness identified in this posture statement review.  Furthermore, by using 1991 as the benchmark year, trends cannot be passed off as snapshots.

Part III should reveal where the Navy is headed and whether longstanding warnings are being addressed. Requiring the longitudinal assessment distinguishes this proposal from a routine reporting requirement, because it is a proposal for institutional memory. No existing statutory report provides a longitudinal assessment of readiness trends, unresolved deficiencies, corrective actions, and the consequences of inaction.

Table 4: Major Elements of a Congressionally Mandated Posture Statement—Part III Longitudinal Assessment

Part III — Longitudinal Oversight

What it requires

1. Historical Readiness Assessment with Cumulative Data on Key Indices Multi-year trends in personnel, maintenance, aviation, surface, submarine, and logistics readiness, reported as trends, not snapshots. From 1991 (end of the Cold War) to the present.
2. Longitudinal Assessment: Deficiencies, Corrective Actions, and Consequences Consequences of inaction by identifying the operational, strategic, and fiscal risks that will result if these longitudinal deficiencies are not addressed.

Conclusion

Congress already requires long-range reporting for ships and aircraft because force structure cannot be understood in a single fiscal year. Readiness and risk evolve over similarly long periods. Yet no comparable statutory mechanism exists to track the condition of the fleet, the persistence of readiness deficiencies, or the consequences of failing to address them.

Furthermore, the experience of the Royal Navy offers a cautionary lesson. For nearly two decades, official reports, parliamentary inquiries, retired officers, journalists, and independent analysts warned of declining Royal Navy capacity, readiness shortfalls, maintenance backlogs, personnel shortages, and the growing gap between commitments and resources. Yet because the Royal Navy continued to deploy and meet immediate operational demands, the cumulative consequences of those trends remained difficult for policymakers and the public to see clearly. The result was not a sudden collapse, but a gradual erosion of capability that became unmistakable only after critical mass had been lost. The implicit lesson is that Britain had shipbuilding plans, budgets, reviews, and testimony. What it lacked was a single, enduring, publicly accessible mechanism that continuously connected warning, consequence, trend, and accountability over decades.24  The proposed reform is designed to provide exactly that function for the U.S. Navy.

The reforms proposed here would not guarantee against a similar outcome for the U.S. Navy. No reporting system can substitute for sound strategy, adequate resources, or effective leadership. They would, however, create a longitudinal public record of U.S. Navy readiness, force structure, operational risk, and the consequences of inaction. By providing Congress and the American people with a consistent, comparable assessment over time, the U.S. Navy’s posture statement would become more than an annual budget justification. It would serve as an enduring institutional record, making long-term trends visible before they become crises and helping ensure that future warnings are neither overlooked nor forgotten.

The intent of this proposal is for the Navy to account, in a form Congress and its analysts can read against the prior year and the years before that. Congress has imposed exactly this kind of discipline on acquisition reporting, on the shipbuilding plan, and on the fleet-requirement assessment. Extending it to the posture statement asks nothing new of the institution, only that the Navy’s most important annual account of itself finally meet the standard Congress already requires of the rest. The Navy’s problem was never an absence of warning. It was the absence of a reporting system capable of preserving those warnings, tracking their resolution, and explaining their consequences in frank terms. Congress solved that problem in acquisition reporting. It solved it in shipbuilding. It solved it in fleet-requirement assessment. The posture statement is the remaining exception. It should not remain so.

Bruce Stubbs had assignments on the staffs of the secretary of the Navy and the chief of naval operations from 2009 to 2022 as a member of the U.S. Senior Executive Service. He was a former director of Strategy and Strategic Concepts in the N3N5 and N7 directorates. As a career U.S. Coast Guard officer, he served as the assistant commandant for capability at Headquarters, served on the staff of the National Security Council, taught at the Naval War College, commanded a major cutter, and served a combat tour with the U.S. Navy in Vietnam during the 1972 Easter Offensive.

References

1. Michael G. Mullen, Admiral, U.S. Navy, Chief of Naval Operations, Opening Statement, Before Subcommittee of the Committee on Appropriations, U.S. Senate, Department of Defense Appropriations for Fiscal Year 2007, 15 March 2006. Mullen stated: “Our long-range ship building plan submitted with this budget, likewise, strikes a balance between near- and long-term requirements. The fleet today stands at 281 ships—not enough in my view to deliver the joint warfighting capabilities the combatant commanders will need over the course of this long war. Our plan, centered on 11 aircraft carriers with a fleet of about 313 ships, affordably meets these needs for the good of the Navy, for the good of the Nation and for the good of our allies and partners.”

2. Jonathan Greenert, Admiral, U.S. Navy, Chief of Naval Operations, Opening Statement, Before Subcommittee of the Committee on Appropriations, U.S. Senate, Hearing on the Department of Defense Appropriations for Fiscal Year 2015, 26 March 2014. The full quote: “We would be unable to execute at least 4 of the 10 primary missions articulated in the Defense Strategic Guidance in the Quadrennial Defense Review. And his prepared statement which declared, “Despite the reduction in funding below levels planned in PB–14, PB–15 strikes this balance and the result is a program that delivers sufficient readiness to meet our GFMAP presence commitments and provide sufficient ‘surge’’ capacity for contingency response.”

3. Vice Admiral Phillip M. Balisle, U.S. Navy, Ret, Letter to Commander, U.S. Fleet Forces Command and Commander, U.S. Pacific Fleet, Enclosure (1) Final Report, Subject: Fleet Review Panel of Surface Force Readiness, 26 February 2010.

4. Daniel Whiteneck, Michael Price. Neil Jenkins, and Peter Swartz, “The Navy at a Tipping Point: Maritime Dominance at Stake?”, Center for Naval Analyses, CAB D0022262.A3/1REV, March 2010, p. 43.

5. Geoff Ziezulewicz, “Fleet’s Material Condition Keeps Getting Worse, New INSURV Report Says,” Navy Times, 2 June 2023. “The Navy fleet’s overall material condition declined slightly in fiscal 2022, ‘resuming a slight but steady negative trend’ that has occurred since fiscal 2017, according to the Navy’s annual Board of Inspection and Survey, or INSURV, report released by the Navy on Friday.”

6. United States Government Accountability Office, Report to the Subcommittee on Readiness, Committee on Armed Services, House of Representatives, Navy Readiness Actions Needed to Address Costly Maintenance Delays Facing the Attack Submarine Fleet, GAO-19-229, November 2018.

7. The Honorable Michael Bayer and Admiral Gary Roughead, U.S. Navy (Retired), Strategic Readiness Review, 3 December 2017. Released by Secretary of the Navy Richard V. Spencer

8. Admiral P. S. Davidson, U.S. Navy, Commander, U.S. Fleet Forces Command, Memorandum for Vice Chief of Naval Operations, Subject: Comprehensive Review of Recent Surface Force Incidents, Enclosure (1): Comprehensive Review of Recent Surface Force Incidents, 26 October 2017. The report also noted: “Evidence of skill proficiency (on ships) and readiness problems (at headquarters) were missed, and over time, even normalized to the point that more time could be spent on operational missions.”

9. Michael Wilson, “FY 2026 National Defense Authorization Act: A Comprehensive Holland & Knight Analysis,” Holland & Knight Alert, 22 December 2025.

10. Thomas Spoehr, ‘What Congress Gets Wrong About Defending the Homeland,” The National Interest, 23 January 2024.

11. U.S. Department of Defense, “Department of Defense Selected Acquisition Reports (SARs),” Press Release, 22 September 2023.

12. Congressional Research Service,The Nunn-McCurdy Act: Background, Analysis, and Issues for Congress,” R41293, 12 May 12, 2016.

13. This Navy document is formally titled Report to Congress on the Annual Long-Range Plan for Construction of Naval Vessels for Fiscal Year XXXX and is drafted by OPNAV N9 for signature by the Navy secretary. The Navy has a statutory requirement (10 U.S.C. §231) to submit annually to Congress this plan that provides “supporting information for assessing and marking up the Navy’s proposed shipbuilding program.” It provides a 30-year shipbuilding procurement profile along with broad guidance about the Navy’s intentions to meet its force structure demands. According to Ron O’Rourke, Congressional Research Service analyst, the plan enables Congress to assess whether (1) the Navy intends to procure enough ships to achieve and maintain its stated ship force-level goals; (2) there is a fundamental imbalance between program goals and projected resources; (3) ship procurement plans are likely to be affordable within future defense budgets; (4) ship procurement planning is reasonable in terms of assumed service lives for existing ships and estimated procurement costs for new ships; and (5) there are potential industrial-base implications. Ronald O’Rourke, Statement before the Committee on Armed Services Subcommittee on Seapower and Projection Forces, U.S. House of Representatives, Hearing on “Future Force Structure Requirements for the United States Navy,” 4 June 2020, p. 1.  In addition, according to Dr. Eric Labs of the Congressional Budget Office, the plan benefits congressional oversight and decisions by potentially revealing: (1) cumulative long-term effects of annual appropriation decisions that may not be apparent from a shorter perspective; (2) imbalances between long-term objectives for inventories and projected budgetary resources; and (3) information on  assumptions about the service lives of major weapons systems and how those assumptions may affect its inventory goals. Eric J. Labs, Senior Analyst for Naval Forces and Weapons, “The Value of 30-Year Defense Procurement Plans for Congressional Oversight and Decision-making,” Congressional Budget Office, Statement before the Subcommittee on Oversight and Investigations Committee on Armed Services U.S. House of Representatives, 1 June 2011.

14. Shelby S. Oakley, Director, Contracting and National Security Acquisition, United States Government Accountability Office, Testimony Before the Subcommittee on Seapower and Projection Forces, Committee on Armed Services, House of Representatives, “Navy Shipbuilding: A Generational Imperative for Systemic Change,” GAO-25-108136, 11 March 2025.

15. The Navy develops this shipbuilding plan; the Secretary of the Navy certifies it and includes it in the defense budget materials; the Secretary of Defense submits those budget materials to Congress; and the unaltered assessment of the Chief of Naval Operations and the Commandant accompanies the shipbuilding plan.

16. 10 U.S.C. § 231a, “Budgeting for life-cycle costs of aircraft for the Army, Navy, and Air Force: annual plan and certification.” The earlier 30-year aviation procurement plan under former § 231a (Pub. L. 110-417, § 141 (2008)) was repealed by the John S. McCain National Defense Authorization Act for Fiscal Year 2019.

17. 10 U.S.C. § 8695, “Navy battle force ship assessment and requirement reporting” (added by Pub. L. 117-81, § 1017(a), Dec. 27, 2021).

18. 10 U.S.C. § 231, “Budgeting for construction, maintenance, and modernization of naval vessels: annual plans and certifications.”

19. Sam Lagrone, “New Navy Fleet Study Calls for 373 Ship Battle Force, Details are Classified,” USNI News, 19 July 2022.

20. Ronald O’Rourke, Navy Force Structure and Shipbuilding Plans: Background and Issues for Congress, Report RL32665 (Washington, DC: Congressional Research Service, 31 March 2025), Table I-1: Total Number of Ships in Navy Since FY1948 and p. 3. “In March 2024, as part of its FY2025 30-year (FY2025-FY2054) shipbuilding plan, the Navy released the details of this new goal, which calls for achieving and maintaining a fleet of 381 manned ships of certain types and numbers, plus 134 large, unmanned surface and underwater vehicles.” U.S. Naval Institute Staff, “Fleet and Marine Tracker,” USNI News, 4 August 2025.

21. Ronald O’Rourke, Congressional Research Service, Testimony Before the Armed Services Committee, Seapower and Projection Forces Subcommittee, U.S. House of Representatives, Hearing on “The State of U.S. Shipbuilding,” 11 March 2025.

22. Office of the Secretary of Defense, Military and Security Developments Involving the People’s Republic of China 2024, Annual Report to Congress, Executive Summary, December 2024, p. vii.

23. Nuray Taylor, “U.S. Pacific Fleet Commander Calls to ‘Embrace the Red’”, Signal Magazine, 28 January 2025. ADM Koehler’s full quote: “”Let’s take a holistic, innovative approach that brings transformative, strategic gain to our force. That includes considering things we’re not doing that we should be doing. It includes embracing the red, which is Navy speak for embracing problems and adjusting quickly and holistically to fix them.”

24. “Is the Royal Navy in Crisis?” Navy Lookout, 8 January 2024.

Featured image: The Nimitz-class aircraft carrier USS Carl Vinson and the Ticonderoga-class guided missile cruiser USS Bunker Hill conduct a replenishment at sea with the Military Sealift Command fast combat support ship USNS Bridge. (U.S. Navy photo by Petty Officer 2nd Class James Evans)

Covert Maritime Intelligence and Russia’s Shadow Fleet

By Catherine Marie Abbott

Introduction

It is widely documented that Russia has leveraged various threat vectors to employ coercive and ancillary irregular tactics against allied nations, including the pervasive use of sanctioned shadow fleet vessels. Acting as a threat multiplier through decentralized and opaque ownership structures, these ships have operated in concert with Russian intelligence, reconnaissance, and surveillance (ISR) assets. Western and Ukrainian intelligence sources note that crew composition varies considerably. Some vessels reportedly operate with supernumerary Russian personnel with documented security or military credentials. This includes individuals affiliated with Russian private military companies (PMC) such as the Moran Security Group and the Wagner Group, as well as with the Main Intelligence Directorate (GRU).

To address Russia’s sanctioned fleet, many allied nations, including the United States, United Kingdom, and European Union have enacted legislation barring such vessels from entering their ports. However, despite proactive measures, the adaptive nature of shadow fleet networks sustains ships’ ability to evade detection and exploit enforcement gaps. At a systemic level, seaports generally serve as tangible operational conduits for the modus operandi of trafficking networks, enabling the smuggling of illicit goods through vulnerable entry points. Reportedly, 90% of the world’s cargo is transported via maritime corridors and containers, with only a segment of goods physically inspected by customs authorities, allowing for clandestine behavior from traffickers or Russian covert operatives.

At present, Russia is exploiting European seaports and maritime infrastructure. Despite port interception and seizure operations from allied nations, Russia’s acquisition of ghost vessels continues in an upward trend. While primarily used as a strategic tool to augment sanctions evasion and sustain defense expenditures, Russia’s irregular tactics, alongside vulnerable seaport ecosystems, create conditions that could facilitate covert human movement under commercial cover for the Russian Federation.

Russian Covert Human Intelligence in the Modern Era

Moscow’s use of clandestine human intelligence assets relies on deniable human networks embedded within state operations, an act synonymous with Cold War-era tactics. In 2022, the Slovenian Security and Intelligence Agency found Russian illegal spies, Artyom Dultsev and Anna Dultseva, masquerading as Argentinians and acting on behalf of the Kremlin. A fundamental espionage tool since the Soviet Era, illegal spies have reportedly remained a critical asset to Moscow’s intelligence architecture against the West, leveraging international vulnerabilities and infrastructure gaps to gain a strategic advantage. This is exemplified in the case of Maria Adela Kuhfeldt Rivera, a Russian illegal operative turned NATO-affiliate socialite.

Though not isolated incidents, Russia’s non-ephemeral strategy has leveraged irregular clandestine methods to infiltrate and destabilize the Western world. During the Soviet era, clandestine volunteer forces, state-run proxy units, and disguised military personnel conducted covert operations while maintaining plausible deniability. Today, PMCs have emerged within a similar structural framework in the Russian Federation, with syndicates such as the Wagner Group internationally executing state security objectives in the application of the Kremlin’s hybrid warfare doctrine. Although not officially recognized as acting under the Federation, PMCs maintain an intimate relationship with the GRU, supporting its intelligence and military agencies.

As a segment of Russia’s state-sponsored irregular operations, gray-zone activity has shifted toward more decentralized hybrid structures, integrating formal intelligence services with semi-commercial and proxy networks. Reporting on Russia’s wartime intelligence activity in Europe indicates increasing reliance by the Federal Security Service (FSB) and the GRU on intermediary facilitators and autonomous operatives to conduct surveillance, targeting, and influence operations across multiple jurisdictions. Parallel training pipelines within Russian academic and military structures institutionalize asymmetric warfare competencies, including cyber operations, disinformation, and reconnaissance tradecraft within distinctly identifiable recruitment pathways into intelligence services. These networks operate through formal state structures and semi-private intermediaries within permissive civilian environments, maintaining plausible deniability for Russia’s intelligence apparatus.

Maritime Shadow Networks and Port Vulnerabilities

Operating under opaque and decentralized ownership structures, shadow vessels have since emerged as an adaptation to international energy sanctions following the onset of the Ukrainian-Russo War in 2022. Though a maritime security threat across all sectors, they elude maritime detection through highly coordinated concealment tactics. Among the most salient of these obfuscating tactics are AIS data manipulation, ship-to-ship transfers, frequent reflaggings and name changes, and falsified vessel documentation, including shell corporations and a lack of P&I insurance. Notably, reports indicate that over 70% of sanctioned vessels changed flags in 2025, complicating allied interdiction and seizure efforts. The synthesis of these arrangements, as well as the Russian Federation’s acquisition of new tankers, has impeded allied nations’ effectiveness in addressing shadow vessels.

Transgressing beyond vessel identification ambiguities, open-source reporting indicates discrepancies between declared crew manifests as well as individuals observed aboard shadow vessels in Northern European waters. For example, in December 2025, Danish maritime pilots reported uniformed Russian Navy personnel not reflected in official manifests in the Danish Strait. Three months prior, French authorities boarded Boracay (IMO 9332810), a Russian-affiliated sanctioned ship operating under multiple aliases and flags. Boracay aliases include Kiwala, Pushapa, and most recently, Feniks. Authorities observed two men with a background in the Wagner Group and the Moran Security Group, both of which are widely assessed to maintain links to Russia’s FSB.

Generally designed as controlled zones, seaports, aside from their vulnerable cyber landscape, remain tangibly susceptible to opportunistic threat vectors. Despite strengthening port security infrastructures and inspection methods, maritime smugglers continue to pursue adaptive concealment measures by hiding illicit cargo in anchors, vents, hull compartments, fuel systems, and underwater attachments, with 85% of seizure events involving shipping containers and 80% of seized narcotics by volume linked to containerized cargo. Meanwhile, 68% of detected cases involve internal conspirators within the maritime cargo supply chain.

Earlier assessments of maritime security governance identified seaports as structurally constrained systems that have a fragmented authority apparatus and disjointed security standards across federal, local, and private actors, often relying on risk-based rather than comprehensive inspection regimes and selectively inspecting cargo. Given the role of seaports as high-volume logistical hubs embedded within urban infrastructure, ports must sustain the continuous movement of cargo, personnel, and vessels, limiting the feasibility of maintaining fully restrictive access control and comprehensive screening measures. Additionally, despite sanctions, some shipments coming from Russian ports have successfully docked and unloaded at ports in the European Union and allied coastal states.

Online reports have noted alleged infiltration by Russian covert operatives into the United Kingdom via commercial cargo ships and lenient border surveillance and security checks, which are reportedly less rigorous than other ports of entry. Although the vessels used were not Russian-flagged and were not listed in current sanctioned shadow fleet listings, access was obtained through ports including Torquay, Middlesbrough, and Grangemouth.

Synthesis: Mechanisms of Potential Covert Human Movement via Maritime Channels

Viewing itself as diametrically opposed to the West, the Russian Federation will capitalize on vulnerabilities to destabilize and polarize allied nations and has exploited sub-Article-5 thresholds using various modes, notably underwater infrastructure mapping, pre-emplacing explosives near subsea assets, and habitual drone incursion operations in allied airspace. Although operating outside standard maritime compliance, current observable indicators do not conclusively demonstrate a systemic, covert infiltration from Moscow through shadow fleet vessels. However, the fleet’s adaptive characteristic, in concert with existing vulnerable physical port security, creates exploitable conditions under which clandestine infiltration could very likely occur.

Arguably, Russia may not extensively use sanctioned vessels to conduct clandestine human operations given their compromised status, but with the acquisition of new auxiliary vessels, the Federation may increasingly rely on a secondary, more adaptable shadow fleet to do so. For example, targeting efforts by allied nations have highlighted frequent renaming and reflagging of select vessels, and despite these evasive tactics, allied states generally maintain a unified, restrictive port-access strategy toward known shadow fleet assets. In the case of the Feniks, while operating under the name Kiwala, the vessel was reportedly linked to Djibouti. However, when later sailing as Boracay, it was observed sailing under a falsified Benin flag and now sails as the Russian-flagged Feniks. Presently, reports indicate that Russia is re-registering and absorbing approximately eighty previously identified sanctioned vessels into its domestic registry. Concurrently, Russia continues to acquire additional auxiliary vessels that fall outside existing sanctions designations. This maritime restructuring may be linked to allied interdiction strategies targeting older Generation 1 sanctioned vessels, which have reduced their operational flexibility and maneuverability. This may also indicate the emergence of lower-signature adaptive configurations consistent with a Generation 2 shadow fleet architecture of newer vessels within Russia’s maritime network.

While Generation 1 vessels have restricted access to port infrastructure, the newly acquired Generation 2 fleet may provide the Kremlin with operationally clandestine flexibility and intangible, non-kinetic tactics required to gain access to allied ports until such vessels are identified, sanctioned, and barred from seaport entry. Preliminary reports already allege Russia’s intention and use of foreign-flagged vessels to gain entry in vulnerable ports varying in size and capabilities for covert motives, so the possibility of using unknown foreign-flagged vessels for such purposes remains considerably likely. Especially given that such vessels have been a notable mechanism for intelligence gathering and hybrid applications.

Conclusion

The Russian shadow fleet has transformed into a tool functioning outside the legal standards of maritime compliance and will almost certainly continue to do so with a new generation of shadow vessels. Though the development of a Generation 2 shadow fleet remains undetermined, the inherent restructuring and acquisition of various vessels indicate the likelihood that Russia may seek to operationalize newly acquired and lesser-known auxiliary vessels in a manner consistent with the evasive and irregular characteristics previously observed across the Generation 1 fleet. This strategic adaptation has been met with minimal resistance, signaling to the Kremlin that its actions carry few geopolitical penalties. The perceived permissiveness of allied states’ reluctance to definitively interdict on sub-Article 5 irregular tactics has incentivized adversarial states to escalate engagement of hybrid warfare strategies against allied nations, both within and outside of the maritime domain. However, under international maritime law, the United Nations Convention on the Law of the Sea (UNCLOS), port states have significant authority to regulate and intervene in the activities of shadow vessels.

Because port access remains subject to coastal state discretion under international maritime law, port states retain significant authority to condition or deny entry to vessels assessed as part of the Generation 2 fleet. Under such a context, port states may further condition clearance on pre- and post-berthing inspection access, enabling customs and maritime security teams to verify declared cargo against physical inventories and identify discrepancies indicative of sanctions evasion or covert logistical activity. Port authorities may also restrict or prohibit disembarkation of individuals not explicitly listed on the vessel’s official crew manifest, pending identity verification and security screening.

Notably, seaport heterogeneity in function, governance, and security structures creates varying operational conditions across maritime infrastructure. Allied states targeting Generation 2 shadow vessels can leverage historical context and preexisting navigational patterns associated with the Generation 1 fleet to determine which terminals contemporary ships will almost certainly use and prioritize enhanced monitoring and port security apparatus accordingly, including stricter inspection regimes and controls on disembarkation for individuals not verified against official crew documentation.

Catherine Marie Abbott holds a master’s degree in security policy studies from the George Washington University Elliott School of International Affairs, specializing in maritime security and intelligence analysis. Her research primarily focuses on maritime logistics, emerging technology, and intelligence processing. The views and opinions expressed by her do not reflect or represent those of her employer or affiliated organizations.

Featured Image: “Moscow Kremlin at Night” by Pazel Kazachkov (Wikimedia Commons)

The Grid is the Arsenal: Power Wars and the New Foundations of Military Strength

By Morgan Bazilian and Jahara Matisek

Just as oil fueled the mechanized warfare of the 20th century, electricity is becoming the foundational resource for militaries of the 21st century. Echoing First Lord of the Admiralty Winston Churchill’s historic decision to switch the Royal Navy from domestic coal to imported oil, today’s energy transition means the ability to generate, store, and deliver electricity will increasingly dictate national power. In order to meet this urgent challenge, the United States government and military must treat grid expansion as a national security priority by creating “Defense Energy Security Zones” to expedite federal permitting, intentionally and aggressively leveraging the Defense Production Act (DPA) to secure critical grid components, and integrating power resilience into how the Pentagon chooses to fund firms that produce munitions and weapon systems.

After two decades of flat demand, U.S. consumption is projected to rise 20% by 2030, driven by a boom in data centers and advanced manufacturing. Yet the physical grid cannot keep up. Transmission projects often take a decade to permit and build. New generation projects face grid interconnection queues lasting around five years, with over 2.6 terawatts of proposed capacity – that’s more than double the existing power fleet – just waiting for a connection. And now, political issues are compounding these technical bottlenecks. From Virginia to Arizona, local communities are increasingly pushing back against the construction of new data centers and the gas-fired power plants required to run them, citing concerns over noise, land use, tax breaks, and environmental impact. The result is $64 billion worth of data center projects being blocked and delayed. The entire digital age system is under strain from every direction.

Growing electrical bottlenecks also challenge American military power. For the Iran war, the Pentagon utilized Anthropic’s tool Claude and Palantir products like Maven, which used AI to process vast amounts of sensor data for multi-domain awareness and to identify targets. Successful AI targeting use, however, was predicated on an enormous, and largely invisible, expenditure of electrical power in the data centers that trained and ran the models.

This reveals a new reality: the military’s power dependencies operate on very different time scales. At the tactical level, the hour-by-hour management of peak load dictates whether radar networks, command centers, and various weapon systems can function without rolling brownouts. At the strategic level, precision munitions, advanced materials, and microelectronics all depend on electricity-intensive sites that take years to plan and build. Worse, their production of these cannot be surged during a crisis without a reliable baseload of power.

The technologies driving the modern civilian economy (e.g., AI, advanced computing, semiconductors, etc.) also enable warfighting advantages. This constraint is not just domestic. The power grid in Guam is falling critically short, putting U.S. bases there at risk and undermining military readiness in the Pacific.

Herein lies the central paradox of digital-age military power: America’s relentless pursuit of technological overmatch has created a profound and overlooked vulnerability. The military is becoming highly dependent on the very energy-intensive technologies, such as AI-enabled military systems, that are straining the national grid to its breaking point. The data center boom in Virginia and Arizona is now in direct competition for power with the industrial base needed to build weapons, maintain air defense, and collect real-time multi-domain awareness. America’s economic might and military power are both being constrained by an infrastructure that cannot meet the demands of the present, let alone the future.

Strategy is Outrunning Infrastructure

Historically, achieving military advantage depended on technological sophistication and industrial production. More recently, this has translated into developing stealthy aircraft and faster missiles, alongside trying to mass produce drones, with energy infrastructure being treated as a background concern. That hierarchy is reversing. Modern military power is an energy-intensive ecosystem, and three systemic shifts explain this transition.

First, computational power has become a foundational military resource. AI is not a niche capability, but is being embedded across everything from logistics to targeting. While training a single frontier AI model requires tens of megawatt-months of electricity (mainly due to dual-use commercial applications), the military challenge is trying to deploy these models. Running continuous AI inference across thousands of distributed battlefield nodes for Joint All-Domain Operations (JADO) creates a persistent, high-volume electrical demand on local grids. Because military operations are increasingly dependent on processing substantial amounts of data in real-time, warfighting capability is now directly constrained by grid capacity at the tactical and operational levels.

Second, modern weapons production is electricity-intensive. From the advanced metallurgy needed for hypersonic weapon systems to the high-temperature processing for ‘old’ artillery shells, manufacturing at every level relies on continuous, high-reliability power. Recent experience demonstrates this defense industrial base link. During Iran’s April 2024 attack on Israel, U.S. Navy destroyers fired substantial numbers of advanced interceptors to defend against ballistic missiles. This single engagement consumed a significant number of missiles from a limited stockpile, while annual production rates for these complex systems remain low. The munitions shortfall has only worsened since the 2026 Iran war, where 5 weeks of munitions expended may take up to 5 years to replace. The expenditure-refill gap reflects the physical limits of specialized, energy-bound production lines. Surge capacity is thus a function of power availability, not just funding and minerals.

Third, this energy demand is creating fierce competition for foundational materials across the entire military-industrial complex. No material illustrates this challenge better than copper. The entire energy transition, from grid expansion and electric vehicles to the data centers powering AI, all runs on copper, where the gap between supply and demand is rapidly widening. Estimates show that global demand for copper is set to double by 2035, creating a massive supply gap – and an obstacle to future economic growth. Yet this demand surge is colliding with a rigid supply chain. New copper mines take an average of 18 years to develop globally and nearly 30 years in the United States. The refined copper needed for the electronics in a missile or a fighter jet is the same copper sought for a new data center.

These shifts mean military effectiveness depends on an integrated supply chain: from mineral extraction to electrical generation, to industrial processing, and finally to operational power. If any link in that chain is constrained (i.e., lack of copper or congested grid) the entire system slows. The decisive question is no longer simply who invents the most advanced technology, but who can secure the materials and power to manufacture and operate that technology at scale.

America’s Structural Power Vulnerability

The United States enters this new era of energy competition with an electrical grid designed for a different century. The energy landscape is changing rapidly. After two decades of flat demand, U.S. consumption will rise 20% by 2030, driven by major growth in data centers, electrified industry, and advanced manufacturing. Forecasts show data centers alone consuming 9% of total U.S. electricity demand by 2030 – roughly 75% of Texas’ power generation. Now, with demand skyrocketing, the grid is being asked to accelerate after years of standing still.

Unfortunately, this demand crashes against a highly balkanized system. The U.S. electrical grid is heavily fragmented into regional interconnects (like ERCOT in Texas or PJM in the Mid-Atlantic) that struggle to share power across state lines. Because power cannot easily flow from regions with a surplus to regions facing brownouts, the physical location of defense manufacturing facilities becomes a critical vulnerability. An ammunition plant in a power-constrained region cannot surge production, regardless of national security needs.

While permitting delays and interconnection queues are well-known problems, the physical expansion of the grid is also hampered by critical hardware shortages driven by booming global demand for power. For example, in the Global South, electricity demand is rising due to growing basic electrification and air conditioning, not AI usage. Worse, the market for high-voltage transformers is straining the ability of countries to build new power plants. The procurement lead time for these essential components has ballooned from months to several years. This not only delays new generation projects but also creates a severe national security risk, as it limits the ability to recover from major storms or a physical attack on the grid.

This challenge is magnified when contrasted with China. While the U.S. grid struggles with fragmentation and inertia, China is executing a centrally planned, state-funded strategy to dominate the energy landscape. Beijing has built a network of over 30,000 kilometers of Ultra-High-Voltage transmission lines to move massive amounts of power from its energy-rich interior to its coastal industrial hubs.

This is not just an energy policy; it is a geopolitical strategy designed to underwrite industrial and military power. This “tale of two grids” creates a grim picture: China is building the electrical foundation for 21st century capabilities for advanced tech and manufacturing for mass, while America remains mired in regulatory and physical gridlock. The result is a dangerous structural mismatch: U.S. strategic ambition is outrunning the very infrastructure required to sustain it.

Conclusion: Power is the new bottleneck for the Economy and Military

The defining strategic constraint is now electrical capacity, not technological innovation. Economic growth, industrial output, and military readiness now depend on America’s ability to build, permit, and deploy the physical systems that generate and move power. Without that expansion, economic ambition and military strategy outrun infrastructure. Allowing any further grid stagnation is essentially a “geopolitical tax” that directly undermines American national security.

Military power faces this constraint immediately. Joint all-domain operations (JADO) need an unbroken chain of energy-intensive data fusion, satellite networks, AI-driven targeting, precision manufacturing, and advanced chips. JADO is what the Pentagon is betting on to ensure warfighters can out-fight near-peer threats, an approach paired heavily with AI during the 2026 Iran war. A resilient and capable electrical grid is needed for JADO and AI to function properly. To win the global AI race, the United States must first harden its grid. Electricity now sets the speed, reach, and endurance of the U.S. military.

To prevent domestic infrastructure from undermining military effectiveness, the United States government must proactively intervene with policies that treat grid expansion as a national security imperative. While the April 2025 White House executive order on grid security and the Department of Energy’s commitments in 2026 are steps in the right direction, they need more ‘industrial teeth’ to be effective in the era of great power competition.

First, Congress must move beyond half-measures. While the House Energy and Commerce Committee holds hearings and debates grid reliability bills, industry experts are right to call out that permitting reform is not a ‘silver bullet’. Market structures must be reformed to properly value and compensate firm, dispatchable power that can survive crises, ensuring a resilient grid that is valued like a strategic asset rather than letting it be dictated by the whims of the free market. Furthermore, the Pentagon should be granted statutory authority to designate specific manufacturing hubs as “Defense Energy Security Zones,” granting them expedited federal permitting under the FAST-41 framework to override local gridlock.

Second, the administration must aggressively leverage the Defense Production Act (DPA) to secure the domestic supply chain for critical grid components. Relying on state-level energy emergency policies to manage shortages is a reactive, losing strategy. Growing lead times for high-voltage transformers are a national security crisis. Utilizing the DPA to incentivize domestic manufacturing and stockpiling of grid parts is a crucial ‘insurance plan’ to ensure the United States can surge when needed and rapidly recover from an attack against the grid.

Third, the Pentagon must integrate power availability into its acquisition approach. The Pentagon cannot award massive contracts to defense firms that host AI data centers or make munitions and weapon systems without assessing whether their facilities (and their suppliers) are connected to a regional grid that is capable enough to sustain surge periods. Power resilience must become an important metric to consider for future defense procurement programs.

The arsenal of the future is becoming increasingly dependent on electricity. If the United States fails to treat grid expansion as a national security priority on par with funding the next submarine or fighter jet, it risks an era where military capability is decided by domestic infrastructure failures rather than adversary action. If America cannot generate and deliver that power at scale, it will lose the next war before the first shot is fired.

Morgan D. Bazilian is the director of the Payne Institute for Public Policy and professor at the Colorado School of Mines, with over thirty years of experience in global energy policy and investment. A former World Bank lead energy specialist and senior diplomat at the UN, he has held roles in the Irish government and advisory positions with the World Economic Forum and the International Energy Agency. A Fulbright fellow, he has published widely on energy security and international affairs.

Lt. Col. Jahara “Franky” Matisek (PhD) is a U.S. Air Force command pilot, senior fellow at the Payne Institute for Public Policy, and a visiting scholar at Northwestern University. He is the most published active-duty officer currently serving, with 2 books and over 200 articles on the defense industrial base, strategy, and warfare. Views are his own and not those of the U.S. Air Force, Department of War, or the U.S. Government.

Featured Image: The new 350 kilowatt-hour solar array located near the Hill Aerospace Museum at Hill Air Force Base, Utah. (U.S. Air Force photo by Cynthia Griggs)

The Cost of Abandoning Taiwan: How Appeasement Leads to an Outcome Far Worse Than Defeat

By Josh Richards and Joseph Hanacek

A Cause Worth Losing For

Foreign policy debates are often framed around a single question: what causes are worth fighting for? Far less often do strategists ask the more uncomfortable but ultimately more revealing question, what causes are worth losing for? In the case of Taiwan, that distinction matters profoundly.

A war over Taiwan would carry the potential for catastrophic military losses, a severe global economic shock, and escalatory dynamics that could touch the nuclear threshold. Senior U.S. defense officials, allied governments, and independent analysts increasingly agree on one point: the only certainty in a direct U.S.–China conflict is that win or lose, the repercussions would be drastic and global in scope.1

But focusing only on the dangers of war obscures the larger strategic reality. Taiwan is not simply another flashpoint in an increasingly crowded Indo-Pacific. It is a structural pillar of the modern international system, technological, economic, and military, on which U.S. power rests. Allowing Beijing to force Taiwan under its control would not merely alter the cross-Strait balance; it would reshape the global distribution of power in ways that are both durable and deeply unfavorable to the United States and its allies.

At the heart of the U.S. relationship with Taiwan are factors that will influence the rest of the twenty-first century: access to advanced computing hardware, the US diplomatic credibility and real power projection, and the strategic positioning that will drive the next generations of technological breakthroughs.  Abandoning Taiwan would impose costs across all three simultaneously, and once incurred, those costs would be extraordinarily difficult, if not impossible, to reverse.2

The strategic situation, in other words, is not that the United States might defend Taiwan and suffer severe consequences. It is that choosing not to defend Taiwan would impose even greater long-term costs on American power. The preferred outcome remains a peaceful resolution that maintains preservation of Taiwan’s democratic autonomy and the cross-Strait status quo. But a peaceful appeasement that effectively abandons Taiwan to coercive unification would be cataclysmic for America and the entirety of the western world.

Reframing the Question: The Strategic Costs of Appeasement

Reframed properly, the Taiwan question is less about the risks of action than the consequences of inaction. If the United States were to abandon Taiwan in the face of Chinese coercion or force, three losses stand out as both credible and, once triggered, largely irreversible.

The first is the erosion, and likely collapse, of U.S. leadership in advanced computing, including the race toward artificial general intelligence (AGI) and the broader ecosystem of high-performance and consumer computing hardware. Taiwan is not merely a major supplier within global semiconductor markets; it is the central node of the world’s most advanced fabrication capacity. Control over that capacity confers leverage not only over supply chains, but over the pace and direction of technological progress itself.3 Should Taiwan’s semiconductor ecosystem fall to the People’s Republic of China (PRC), China would gain an unparalleled advantage in the production of the hardware that underpins artificial intelligence, advanced weapons systems, and the digital economy writ large.4

The second cost of appeasement would be a profound loss of U.S. diplomatic credibility around the world, particularly with regards to its power projection capability across Asia. Taiwan is the keystone of the first island chain and a focal point for how allies and partners assess American resolve. A failure to defend Taiwan would not be interpreted in isolation; it would be read as a signal about U.S. willingness to absorb risk on behalf of its security commitments more broadly. In more concrete terms, it would result in the creation of an incredibly influential strategic salient for China, providing them geostrategic leverage throughout the entire first island chain. Japan, South Korea, the Philippines, Singapore, and others would be forced to reconsider long-standing assumptions about American staying power, basing access, intelligence sharing, and strategic alignment.5 History suggests that when fear eclipses confidence in a patron’s resolve, alliances erode quickly, and are rarely reconstituted on the same terms.6

The third cost is more subtle, but no less consequential: the loss of the United States’ ability to break out ahead in the next generation of foundational industries. Advanced computing is not an end in itself; it is the enabling substrate for future dominance in quantum technologies, automated manufacturing, robotics, advanced materials, and scalable energy systems. The United States currently enjoys a powerful advantage in these domains not only because of capital or policy, but because it remains the world’s most attractive ecosystem for top scientific and engineering talent.7 A collapse in technological leadership, paired with a visible retreat from global commitments, would redirect those talent flows, and the breakthroughs they enable toward alternative centers of gravity.

Taken together, these three losses describe more than a regional setback. They outline a pathway by which the United States would relinquish its position at the center of the global technological and security order. Once the process began, reversing it would demand resources, time, and political cohesion on a scale that great powers historically struggle to mobilize once strategic momentum turns against them.

The first cost of appeasement: Taiwan and the Foundations of American Technological Power

Taiwan’s strategic importance to the United States is often summarized in shorthand: semiconductors. But that simplification understates the depth of the relationship and obscures why Taiwan’s role is so difficult to replace. Taiwan is not merely a large producer within global chip markets; it is the central node of the world’s most advanced semiconductor manufacturing ecosystem. Its firms are the world’s only producers capable of manufacturing the world’s most advanced semiconductor nodes, combining leading-edge logic fabrication, advanced process integration, and the tacit manufacturing knowledge required. Despite massive state-backed investments by the United States, China, South Korea, Japan, and the European Union, no competitor has successfully replicated Taiwan’s frontier manufacturing capabilities at any scale.8

Advanced semiconductors now underpin nearly every domain of modern state power, including artificial intelligence, advanced weapons systems, secure communications, space and cyber capabilities, and industrial productivity. The United States retains world-class strength in chip design, electronic design automation, and systems integration, but those advantages are inseparable from Taiwan’s ability to manufacture at the cutting edge.9 Without access to that manufacturing base, the U.S. technology stack becomes brittle, slower to innovate, and more vulnerable to disruption.

Much has been made of U.S. efforts to reshore or “friend-shore” semiconductor production through initiatives such as the CHIPS and Science Act. These efforts are strategically necessary, but they should not be confused with strategic sufficiency. Building a handful of fabrication plants does not recreate the dense industrial ecosystem Taiwan has spent decades refining, an ecosystem that includes specialized suppliers, an experienced workforce, rapid iteration cycles, and institutional memory that cannot be legislated into existence on a political timeline.10 Even optimistic projections suggest that U.S.-based fabs will take years to reach maturity, and longer still to approach the yield, flexibility, and cost structures that Taiwanese firms currently achieve.11

From a strategic perspective, Taiwan’s value lies not only in output volume, but in the continuity and reliability of frontier computing supply. That supply underwrites what can be described as frontier computing, the high-performance chips used in advanced AI research, military systems, and scientific discovery, as well as consumer computing, the mass-market hardware that sustains global digital ecosystems.

In this sense, Taiwan functions as critical infrastructure for the modern world. Its fabs are not interchangeable assets that can be relocated or duplicated without consequence. They are strategic choke points whose fate will shape the balance of technological power between democratic and authoritarian systems for decades to come.12

The Computing Arms Race: Bad Cases, Worst Cases, and Irreversible Outcomes

At a high level, two plausible futures stand out, both damaging, but one far more destabilizing than the other.

The first is what might be termed the bad case. In this scenario, a Taiwan crisis, through blockade, quarantine, or limited conflict, causes Taiwanese semiconductor production to halt or sharply contract. Advanced chip supply would collapse, driving up costs, freezing portions of AI research and deployment, and triggering a sharp economic downturn. Analysts estimate that a major Taiwan disruption could cost the global economy trillions of dollars in lost output within the first year alone.13

In this bad case, both the United States and China would scramble to fill the void. The Western world retains access to much of the underlying intellectual property, design expertise, and niche manufacturing equipment required to rebuild capacity, but it moves slowly in constructing facilities, training labor forces, and scaling production. China, by contrast, possesses formidable advantages in industrial mobilization: the ability to build quickly, direct capital at scale, compel workforce participation, and absorb inefficiencies through state subsidy.14 At the same time, Beijing would continue to face constraints imposed by export controls, sanctions, and limited access to the most advanced lithography and design tools. The result would be a grinding, costly computing arms race in which neither side emerges unscathed.

The second scenario, the worst case, is qualitatively different. In this outcome, Taiwan’s semiconductor ecosystem does not merely shut down; it falls under effective PRC control, either through occupation, coerced integration, or a perceived abandonment by the United States that precipitates a rapid political and industrial merger. In such a case, the single most important variable is not physical plant damage, but the fate of Taiwan’s workforce, intellectual property, and specialized equipment. Should those assets be absorbed intact into China’s industrial base, Beijing would almost certainly surge ahead in both frontier and consumer computing.15

This outcome would have consequences far beyond short-term supply shocks. China would become the dominant producer of advanced hardware across nearly every category of modern computing, from data center accelerators and AI training chips to smartphones, electric vehicles, avionics, and missile guidance systems. The competitive balance in artificial intelligence would tilt decisively, not because of superior algorithms alone, but because of privileged access to the hardware that makes large-scale experimentation and deployment possible.16 Whether one believes artificial general intelligence is imminent or distant, beneficial or dangerous, its development under the exclusive control of an authoritarian state and great power rival would represent one of the most destabilizing and consequential shifts in the global balance of power in modern history.

Even in the bad case, the world would begin to fracture into competing technological blocs as states seek reliable access to computing resources. In the worst case, that fracture would harden rapidly, locking in Chinese advantages and forcing others to adapt to standards, platforms, and dependencies set in Beijing rather than Washington. Once that transition occurred, reversing it would require not just policy change, but the reconstruction of entire industrial and research ecosystems, a task that history suggests few great powers successfully accomplish after a major strategic reversal.

From this perspective, the central danger of abandoning Taiwan is not disruption, but capture. Preventing the seamless transfer of Taiwan’s semiconductor ecosystem into PRC hands is therefore not a secondary concern or contingency plan; it is one of the core strategic imperatives shaping the U.S. response to China’s aggression.

Pax Silica Ends: Two Tech Stacks and a Fractured Global Economy

If Taiwan’s semiconductor ecosystem is disrupted, or worse, captured, the consequences will not be confined to chip shortages or temporary market dislocations. The more enduring effect would be the collapse of what might be called pax silica: a global technological order in which advanced computing supply chains, standards, and research networks remain broadly interoperable across political systems.

That order is already under strain. U.S. export controls, Chinese industrial policy, and intensifying strategic competition over technology flows have begun to fragment the global technology landscape. A decisive break over Taiwan would accelerate this process dramatically, pushing the world toward two competing and increasingly incompatible technology stacks, one centered on the United States and its allies, the other organized around the People’s Republic of China.17

On the surface, this bifurcation might appear to concern consumer-facing choices: whose smartphones dominate emerging markets, which AI platforms are most widely adopted, or which digital standards govern next-generation networks. In reality, the fault lines would run much deeper. Competing tech stacks would structure access to rare earth minerals, advanced materials and chemicals, energy inputs, cloud infrastructure, financial services, and the research ecosystems that underpin long-term innovation.18 Countries would be pressured, implicitly or explicitly, to align their regulatory regimes, supply chains, and security partnerships with one bloc or the other.

In such a world, Taiwan’s fate becomes determinative. If Taiwan remains outside PRC control, the United States and its partners retain a credible foundation for a high-end technology ecosystem that can sustain innovation and resilience, even under stress. If Taiwan falls into Beijing’s orbit, the balance shifts decisively. China would not only command a dominant share of advanced hardware production; it would be positioned to shape standards, dictate terms of access, and leverage dependencies across a wide swath of the global economy.19

This would be particularly destabilizing for middle powers and developing states, many of which rely simultaneously on Western security guarantees and Chinese economic engagement. Over time, such pressures would erode the openness that has characterized the post–Cold War global economy, replacing it with a more rigid, bipolar system defined by technological allegiance rather than market efficiency.20

For the United States, the end of pax silica would represent more than a loss of convenience or profitability. It would mark a structural shift in how power is accumulated and exercised internationally. Technological leadership has long allowed Washington to amplify its influence without constant coercion, embedding U.S. preferences in standards, platforms, and institutions that others voluntarily adopt. A world split between rival tech stacks, especially one in which China controls the most critical hardware inputs, would sharply curtail that advantage.

Appeasement and the Erosion of US Influence Abroad

Technology alone, however, does not determine strategic outcomes. Taiwan’s importance is magnified by its role in the military and political geography of the Indo-Pacific, where perceptions of U.S. resolve are as consequential as force posture itself.

Taiwan sits at the center of the first island chain, anchoring a network of alliances and partnerships that constrain the People’s Liberation Army’s ability to project power into the Western Pacific. Its continued autonomy complicates Chinese military planning, preserves U.S. freedom of maneuver, and reassures regional partners that American commitments remain credible.21 Conversely, Taiwan’s loss would create a cascading crisis of confidence that no amount of declaratory policy could easily repair.

Diplomatic credibility is not an abstract concept. It is built through repeated demonstrations that commitments will be honored even when doing so entails risk. A failure to defend Taiwan would be interpreted throughout Asia not as a narrow exception, but as a signal that the United States is unwilling or unable to absorb the costs required to maintain its strategic position in the Indo-Pacific. Japan would be forced to reconsider the viability of extended deterrence and the security of its southwestern islands. South Korea would face renewed pressure to pursue independent nuclear capabilities. Southeast Asian states would accelerate hedging strategies, recalibrating basing access, intelligence cooperation, and diplomatic alignment in anticipation of a diminished U.S. role.22

The logic underlying these reactions is well captured by Thucydides’ enduring insight that fear, honor, and interest drive state behavior. Alliances endure not because partners are altruistic, but because they believe their interests and honor are safer within a collective framework than outside it. When fear of abandonment outweighs confidence in a patron’s resolve, alignment gives way to accommodation. History offers few examples of alliances that survived such a reversal intact.23

Importantly, this dynamic cuts both ways. A credible U.S. effort to defend Taiwan, even under adverse conditions, would reinforce deterrence well beyond the immediate theater. It would signal that when Washington draws a line in the sand, crossing it has repercussions. In a world where diplomacy is increasingly being made on the basis of realpolitik rather than ideological framework, demonstrating a willingness to partake in brinksmanship with PRC is the only way to assure allies and partners that it is in their own best interest to share burdens, accept risk, and align their long-term strategies with U.S. leadership regardless of the shifting political winds attendant with democratic nations. As several analysts have noted, credibility is often less about winning clean victories than about demonstrating a willingness to stand firm when outcomes are uncertain.24

Taiwan thus functions as a strategic litmus test. The question facing U.S. policymakers is not whether defending Taiwan guarantees stability, but whether abandoning it would all but ensure the unraveling of the alliance system that has underwritten American influence in Asia for more than half a century.

Geography Still Matters: Taiwan as the Modern Unsinkable Aircraft Carrier

Long before semiconductors or artificial intelligence entered the strategic lexicon, Taiwan’s importance was rooted in geography. General Douglas MacArthur famously described the island as an “unsinkable aircraft carrier,” a forward position from which the United States could project power and constrain adversaries across maritime Asia. While the technologies of warfare have changed dramatically since MacArthur’s era, the underlying logic has not; if anything, it has intensified.25

An autonomous and U.S. aligned Taiwan shapes deterrence dynamics throughout the region. As things stand today, any Chinese attempt to project power seaward must contend with layered defenses, allied coordination, and the prospect of early escalation under unfavorable conditions. Remove Taiwan from that equation, and the PLA’s operating environment becomes markedly more permissive. Deterrence weakens not because U.S. capabilities vanish overnight, but because the balance of risk and opportunity shifts decisively in Beijing’s favor.26

A PRC controlled Taiwan presents a stark contrast from a geostrategic perspective. As Taiwan sits astride the most critical maritime and air corridors linking Northeast Asia to Southeast Asia and the broader Pacific, control of the island would allow the PLA to break through the first island chain, extending Chinese power projection deep into the Philippine Sea and undermining the defensive geometry that has long favored the United States and its allies.27 From Taiwan, China could more effectively contest U.S. naval operations, threaten key bases in Japan, and exert sustained pressure on sea lines of communication that carry a significant share of global trade.28

Equally important are the second-order effects. A PRC-controlled Taiwan would significantly tighten Beijing’s grip over waters within the entire first island chain, from Japan to Singapore. In the event that China wanted to exert pressure on any nation attempting to conduct commerce inside that arc, a PRC bastion in Taiwan would alter risk calculations for commercial shipping, energy flows, and undersea infrastructure, driving up insurance costs and increasing the vulnerability of global trade to political pressure.29 For an international system heavily dependent on maritime commerce, such a shift would reverberate far beyond the Indo-Pacific.

Seen through this lens, MacArthur’s aphorism is not an anachronism. Taiwan remains an unsinkable aircraft carrier, not in the narrow sense of hosting runways, but as a fixed geographic asset that anchors regional stability. Surrendering that asset would impose enduring military disadvantages that no amount of distant force projection could easily offset.

Losing the Next Industrial Breakout

The strategic consequences of abandoning Taiwan would not end with today’s technologies or force postures. A third, often under-appreciated cost lies in the loss of opportunity to lead the next wave of industrial and scientific breakthroughs, those that will define economic and military power in the decades ahead.

Advanced computing is the enabling substrate for progress across a wide range of emerging sectors, including quantum information science, automated and additive manufacturing, robotics, advanced materials, and scalable low-cost energy systems. In each of these fields, the pace of discovery and commercialization is increasingly shaped by access to high-performance computing, large datasets, and AI-driven experimentation. States that command these inputs gain a compounding advantage, accelerating innovation while widening the gap with competitors.30

The United States currently occupies a strong position in this landscape not because of deterministic superiority, but because it hosts a uniquely attractive ecosystem for global talent. Its universities, research institutions, venture capital networks, and open scientific culture continue to draw many of the world’s most capable engineers and scientists.31

Abandoning Taiwan would place this ecosystem at risk. A visible collapse in U.S. technological leadership, paired with a retreat from global security commitments, would redirect talent flows and investment decisions toward alternative hubs perceived as ascendant or more stable. China, already investing heavily in strategic technologies through state-directed programs, would be well positioned to capitalize on such a shift, particularly if it also secured dominant access to advanced compute through control of Taiwan’s semiconductor industry.32 Losing ground in these areas would not simply slow U.S. growth; it would constrain strategic choice, forcing policymakers to operate within narrower margins of technological advantage.33

History suggests that technological leadership, once ceded, is extraordinarily difficult to reclaim. It depends not only on investment and policy, but on intangible factors, prestige, confidence, and the belief among innovators that they are building the future rather than catching up to it. By allowing Taiwan to fall into Beijing’s hands, the United States would risk forfeiting precisely those intangibles at a moment when they matter most.

In this sense, the defense of Taiwan is not merely about preserving the status quo. It is about protecting the conditions under which the United States can continue to shape the frontier of American strategic advantage. Appeasement would not buy stability; it would mortgage the future.

Conclusion: Fear, Honor, and Interest in the Twenty-First Century

More than two millennia ago, Thucydides observed that fear, honor, and interest drive the decisions of states. That framework remains instructive today, not as a relic of classical realism, but as a reminder that power, credibility, and perception are inseparable in international politics.

In the case of Taiwan, all three align. The fear is evident: a world in which China controls the most critical nodes of advanced computing, dominates the military geography of the Western Pacific, and sets the terms of technological and economic participation for others. The interest is unmistakable: preserving the foundations of American technological leadership, alliance credibility, and freedom of maneuver in a system that has underwritten U.S. prosperity and security for decades. And honor, often misunderstood, lies not in abstract notions of pride, but in the trust that allies and partners place in American commitments, and in the reputational capital that makes leadership possible.34

Much has been written about whether Taiwan is a cause worth fighting for. That question, while important, is incomplete. The more consequential question is whether the United States is prepared to live with the world that would follow from choosing not to. The evidence suggests that such a world would be poorer, more coercive, and less stable, defined by fractured technology systems, weakened alliances, and a strategic environment in which force and dependency replace rules and consent.

This paper has argued that Taiwan’s significance lies not in symbolism, but in structure. Taiwan anchors the technological supply chains, alliance networks, and military geography that sustain the current international order. Its loss would not be a discrete regional setback, but a systemic shock whose effects would reverberate across innovation, security, and global governance for generations.

For that reason, this paper serves as a foundation rather than a conclusion. The defense of Taiwan cannot be understood, or executed, through military posture alone. It depends on a wider set of enabling conditions: the ability to sustain asymmetric defense at scale, to endure economic and energy coercion, to secure critical materials, and to preserve the physical and digital infrastructure that connects Taiwan to its allies. Each of these domains merits focused analysis in its own right.

Defending Taiwan does not promise easy victories or risk-free outcomes. But abandoning it would represent a strategic self-inflicted wound, one that would shape the next century of American power far more decisively than the costs of deterrence ever could. In that sense, Taiwan is not merely a test of resolve. It is the fulcrum on which the future balance of the international system may well turn.

Josh Richards is the Chief Commercial Officer of Pacific Peering. He serves on the UN’s Joint Task Force on SMART Cables as a member of the Steering Committee, and chairs the Business Development Committee. He is a Security Fellow with the Truman National Security Project, a Tech Policy Fellow with the Aspen Institute, and a Senior Fellow with AI2030.

Joseph Hanacek is a Surface Warfare Officer in the United States Navy. He serves as a Warfare Tactics Instructor at the Surface Advanced Warfighting School detachment of the Naval Surface and Mine Warfighting Development Center in San Diego, CA. The views and opinions presented herein are those of the author and do not necessarily represent the views of the Department of War, the Department of the Navy, or its components.

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24. Evan S. Medeiros, “The Changing Fundamentals of U.S.–China Relations,” The Washington Quarterly 42, no. 3 (2019): 93–119, https://www.tandfonline.com/doi/full/10.1080/0163660X.2019.1666355

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28. James Holmes, “Taiwan Must Prepare for War with China,” The National Interest, June 5, 2024, https://nationalinterest.org/blog/buzz/taiwan-must-prepare-war-china-211304

29. Isaac Kardon and Wendy Leutert, “Pier Competitor: China’s Power Position in Global Ports,” International Security 46, no. 4 (Spring 2022): 9–47, https://www.mitpressjournals.org/doi/10.1162/isec_a_00433

30. Michael Horowitz et al., The Future of Military Applications of Artificial Intelligence, Orbits Volume 64, Issue 4, 2020, Pages 528-543, August 2020, https://www.sciencedirect.com/science/article/abs/pii/S0030438720300430?via%3Dihub

31. Michael Beckley, “The Power of Nations: Measuring What Matters,” International Security 43, no. 2 (Fall 2018): 7–44, https://www.mitpressjournals.org/doi/10.1162/isec_a_00328

32. Rush Doshi, The Long Game: China’s Grand Strategy to Displace American Order (Oxford: Oxford University Press, 2021), https://www.rushdoshi.com/thelonggame

33. Kori Schake, “Ending China’s Chokehold on Rare-Earth Minerals,” Bloomberg, September 2020, https://www.bloomberg.com/opinion/articles/2020-09-18/ending-china-s-chokehold-on-rare-earth-minerals

34. Thucydides, History of the Peloponnesian War, trans. Thomas Hobbes (London: 1629), https://archive.org/details/eightbookesofpel00thucuoft/page/n5/mode/2up; see also Kori Schake, “Deterrence,” Hoover Institution, May 2022, https://www.hoover.org/research/deterrence

Featured image: Taipei skyline at night. (Wikimedia Commons)

Fostering the Discussion on Securing the Seas.