Amid Pacific naval arms race, US defense chief calls for increased funding for ships

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Washington,September 17, 2020: U.S. Defense Secretary Mark Esper on Wednesday announced called for increased funding for Navy shipbuilding after a major review of its force structure — but it is unclear where that funding will come from.

In a speech delivered at the think tank Rand, Esper called for a Navy of “over 350 ships,” specifically by increasing the Navy’s shipbuilding funding account.

“We will build this fleet in such a way that balances tomorrow’s challenges with today’s readiness needs, and does not create a hollow Navy in the process,” Esper said. “To achieve this outcome, we must increase funding for shipbuilding and the readiness that sustains a larger force. Doing this, and finding the money within the Navy budget and elsewhere to make it real, is something both the Navy leadership and I are committed to doing.

The Pentagon sought $207 billion for the Navy in its fiscal 2021 budget request. Even a 2 percent shift under that top line would represent $4.14 billion in extra funding for shipbuilding — real money, even by Pentagon standards.

The call to shift funding toward shipbuilding comes amid an accelerating naval arms race in the Pacific, with China investing in both a massive fleet and shore-based, long-range anti-ship missile capabilities to keep the U.S. Navy’s powerful carrier air wing out of striking distance. China is building toward a fleet of as many as 425 ships by 2030, according to the Center for Strategic and International Studies, while the U.S. Navy is building to a fleet of more than 355 ships, Esper said.

The decision to increase shipbuilding funds, which Esper billed as a “game changer” in his remarks, comes as a result of an internal “Future Naval Force Study,” led by Deputy Secretary of Defense David Norquist. That study — which essentially superseded a review from the service itself — was delivered to Esper this week.

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